A North Dakota workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — typically sole proprietors, partners, LLC members and corporate officers — while the law still requires coverage for employees once a business has 1 or more.
This guide explains who qualifies for the North Dakota workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up. Verified against North Dakota sources as of October 2026.
North Dakota at a Glance
| Coverage required at | 1 employee(s) |
| Filed with | North Dakota Workforce Safety & Insurance (WSI). Forms and the myWSI online portal are at https://www.workforcesafety.com. The Verification of Nonemployment information is at https://www.workforcesafety.com/employers/insurance-coverage-information/verification-nonemployment. Phone: 1-800-777-5033. After reviewing the nonemployment form, WSI sends a letter of good standing to the ND Secretary of State. |
| Penalty for being uninsured | Under NDCC 65-04-33, an uninsured employer owes the unpaid premiums with penalties and interest. It also owes a penalty of 25% of all premiums due for the most recent year of noncompliance, plus 5% for each earlier year. WSI may assess 5000 for each premium period the employer was uninsured. WSI’s Failure to Secure Coverage page also lists a 10000 penalty plus 100 per day while the violation continues. Willfully failing to secure coverage is a class A misdemeanor, or a class C felony if the premium due is over 1000. The civil liability for that is 5000 plus three times the premium shortfall. The employer may also owe the actual cost and reserves of claims from the uninsured period, and injured workers may sue an uninsured employer for damages. |
In This North Dakota Guide:
Who Qualifies for A North Dakota Workers Comp Exemption
North Dakota limits the election to owners with a real stake in the business; the table below lists the classes and any ownership-percentage or officer-count limit.
Corporate officers are the most common filers of a North Dakota workers comp exemption. The rule usually requires the officer to own a minimum share of the company and to file the election in writing before an injury, not after.
How to File the North Dakota Workers Comp Exemption
North Dakota does not use a separate state form; the election is made with the insurer on the policy. It is filed with North Dakota Workforce Safety & Insurance (WSI). Forms and the myWSI online portal are at https://www.workforcesafety.com. The Verification of Nonemployment information is at https://www.workforcesafety.com/employers/insurance-coverage-information/verification-nonemployment. Phone: 1-800-777-5033. After reviewing the nonemployment form, WSI sends a letter of good standing to the ND Secretary of State..
Filing on the state’s own site costs nothing beyond any statutory fee — the “exemption filing services” that advertise on this search charge for the same form.
North Dakota Workers Comp Exemption Rules at a Glance
The exact North Dakota workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 1 |
| Workers exempt by law | Farm and ranch labor (agricultural service is excluded from “hazardous employment,” NDCC 65-01-02). Household domestic workers. Licensed real estate brokers and salespersons, if all three conditions are met: licensed under 43-23-05, paid substantially all by sales and not by hours, and a written agreement says they are independent contractors (NDCC 65-01-02). Newspaper delivery personnel. Certain custom farm operations. Employees working in the operation of a place of worship. Federal and railroad employees. The employer’s children under 22. Independent contractors under the common-law test. Coverage is required once one or more employees are regularly employed. |
| Where to file | North Dakota Workforce Safety & Insurance (WSI). Forms and the myWSI online portal are at https://www.workforcesafety.com. The Verification of Nonemployment information is at https://www.workforcesafety.com/employers/insurance-coverage-information/verification-nonemployment. Phone: 1-800-777-5033. After reviewing the nonemployment form, WSI sends a letter of good standing to the ND Secretary of State. |
| Proof of exemption or coverage | A WSI Certificate of Payment. It is issued once premium is paid and can be printed from myWSI. Businesses with no employees use the Verification of Nonemployment (SFN 53068). Anyone can check coverage with the WSI Employer Search tool at workforcesafety.com, by business name or federal ID number. General contractors can be held liable for the premiums and penalties of an uninsured subcontractor, so they should get one of these documents. |
What A North Dakota Workers Comp Exemption Gives Up
An exempt owner who is hurt on the job in North Dakota has no workers’ comp claim: no medical coverage from the policy, no wage replacement and no disability award. Health insurance may exclude work injuries. Most owners who physically work the job keep themselves covered for that reason.
One honest paragraph on the “ghost policy”: a minimum-premium policy with no employees sold to owners who need a certificate of insurance. It is legal in many states, but it is not a North Dakota workers comp exemption — it is coverage with nobody on it. If you add a worker, it must be reported, or the audit will find them.
Workers Exempt by Law in North Dakota
Farm and ranch labor (agricultural service is excluded from “hazardous employment,” NDCC 65-01-02). Household domestic workers. Licensed real estate brokers and salespersons, if all three conditions are met: licensed under 43-23-05, paid substantially all by sales and not by hours, and a written agreement says they are independent contractors (NDCC 65-01-02). Newspaper delivery personnel. Certain custom farm operations. Employees working in the operation of a place of worship.
Federal and railroad employees. The employer’s children under 22. Independent contractors under the common-law test. Coverage is required once one or more employees are regularly employed.
Proving A North Dakota Workers Comp Exemption or Coverage
A WSI Certificate of Payment. It is issued once premium is paid and can be printed from myWSI. Businesses with no employees use the Verification of Nonemployment (SFN 53068). Anyone can check coverage with the WSI Employer Search tool at workforcesafety.com, by business name or federal ID number.
General contractors can be held liable for the premiums and penalties of an uninsured subcontractor, so they should get one of these documents.
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Why the North Dakota Workers Comp Exemption Matters
The North Dakota workers comp exemption is a trade: lower cost today against no safety net if you are hurt. The second half of the trade is the one the search results never lead with. Because North Dakota is monopolistic, coverage can only be bought from the state fund (WSI), not from private insurers.
An employer’s children aged 22 and older must be covered, with premium based on actual wages up to the payroll cap. A WSI letter of good standing, or a Verification of Nonemployment, is needed for a North Dakota contractor’s license.
If the North Dakota workers comp exemption rules above leave any doubt about whether a worker counts, ask the state agency before you decide — the answer is free, and the penalty for guessing wrong is not.
Employer side: the North Dakota requirements guide covers the threshold, who counts and the penalties in full. Hurt while exempt? You may still have a claim against a third party — a licensed attorney can say.
Frequently Asked Questions
Who can file a workers comp exemption in North Dakota?
Typically owners with a real stake — sole proprietors, partners, LLC members and qualifying corporate officers — not employees. See the table for North Dakota’s rule.
What form is the North Dakota workers comp exemption?
The election is made on the policy or with the agency — see the table. File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in North Dakota still collect benefits if hurt?
No. An exemption removes the owner from coverage, so there is no claim for medical care or lost wages. That is the trade.
Official North Dakota Sources & Resources
- North Dakota North Dakota Workforce Safety & Insurance (WSI): https://www.workforcesafety.com
- North Dakota Workers’ Comp Statute: https://ndlegis.gov/cencode/t65c01.pdf
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This North Dakota workers comp exemption guide was last verified against official North Dakota sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
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- North Dakota Workers’ Comp Requirements (Employers)
- Workers’ Comp Guides for All 50 States
Disclaimer: This guide is informational only and is not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm or insurer. Workers’ comp benefits, settlement values, deadlines, and requirements vary by state and by the specific facts of your injury and change over time, and any settlement figures here are illustrative only.
Confirm your rights and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.