North Dakota Workers’ Comp Cost (2025): Rates, Mods & Audits
In 2025, all North Dakota employers must continue to obtain workers’ compensation coverage through the state-run insurer Workforce Safety & Insurance (WSI). Premium rates depend on payroll, industry class, and your experience modification factor (EMR). Average manual rates range from $0.85 to $3.20 per $100 payroll, varying by industry risk level.
Who Must Carry Coverage
North Dakota is a monopolistic state — meaning only WSI can issue workers’ compensation insurance. Coverage is mandatory for nearly all employers who:
- Hire full-time, part-time, or seasonal workers within North Dakota.
- Operate as corporations, LLCs, or partnerships with active members.
- Contract or subcontract work performed in-state.
Failure to secure coverage can lead to penalties, back premiums, and personal liability for unpaid claims.
| Factor | Typical Range | Notes |
|---|---|---|
| Base rate per $100 payroll | $0.85–$3.20 | Based on industry classification per WSI manual |
| Experience Mod (EMR) | 0.70–1.50 | Reflects loss history; recalculated annually |
| Premium Audits | Annual | Checks payroll and classification accuracy |
| Safety Credits | Up to 15 % | Via WSI’s Safety Management Program |
Industry Rate Examples (2025)
- Clerical Office (Class 8810): ≈ $0.90 per $100 payroll
- Light Manufacturing (Class 3113): ≈ $2.25 per $100 payroll
- General Building Construction (Class 5645): ≈ $3.10 per $100 payroll
- Retail / Service (Class 8017): ≈ $1.45 per $100 payroll
Experience Modification (EMR)
Your EMR compares your claims performance to other employers in the same class. A mod below 1.00 earns a discount; above 1.00 increases premiums. It’s calculated using:
- Three prior years of loss data (excluding current year)
- Claim frequency and severity
- Total payroll and classification
Example: A construction firm with a 0.85 mod and $100,000 payroll (Class 5645) pays about $2,635 instead of $3,100 — a 15% savings due to strong safety results.
Audit Preparation
WSI audits verify payroll and classification accuracy. Avoid issues by maintaining records for:
- Owner and subcontractor coverage certificates
- Accurate job classifications
- Wage and overtime documentation
Errors or omissions can result in back premiums, interest, and penalties.
Safety Programs & Discounts
- Safety Management Program (SMP): up to 15 % credit
- Drug-Free Workplace: up to 5 % discount
- Return-to-Work (RTW): lowers claim duration, improving future mods
Renewal & Forecasting
- Submit updated payroll early to avoid midyear adjustments.
- Verify class codes and claim data before renewal.
- Track claim frequency; multiple small losses impact future EMRs.
- Engage WSI’s consultation services for cost-control planning.
FAQs — North Dakota Workers’ Comp 2025
Are business owners exempt?
Some corporate officers, LLC members, and sole proprietors may opt out by filing exemption forms with WSI.
How can I improve my experience mod?
Invest in safety training, investigate incidents promptly, and maintain return-to-work programs to reduce claims.
What happens if I fail an audit?
Misclassification or underreporting leads to back premiums, penalties, and interest. Keep detailed payroll and job records.
Can I use a private insurer?
No. North Dakota requires all employers to purchase coverage directly from WSI — private carriers aren’t allowed.
Do safety certifications reduce costs?
Yes. Employers in WSI’s Safety Management or Drug-Free Workplace programs can earn up to 20% total premium credit.
Key Takeaways
- Coverage is mandatory through WSI — no private insurers allowed.
- Rates: $0.85–$3.20 per $100 payroll (industry-based).
- EMR significantly affects premiums (range 0.7–1.5).
- Accurate classification prevents audit penalties.
- Safety programs directly lower future costs.
References