An LLC is not automatically required to buy every type of policy. It still needs WSI coverage if it has employees, and auto coverage on registered vehicles. The structure may separate some company obligations from your personal assets. It does not pay a legal defense, replace lost income, or issue a certificate of insurance.
FAQ_category: (HIDDEN) Industry FAQs
Yes, once a job exceeds $4,000. Your license application must include a certificate of liability insurance in the same name as the license, listing the Secretary of State as certificate holder. If you have employees residing in North Dakota, you also need a WSI certificate of payment. Renewal is due March 1 annually.
WSI can issue a cease and desist order and stop your operation. You face a penalty of $10,000 plus $100 for each day the violation continues, and you are liable for the actual cost and reserves of claims from the uninsured period. Your workers may also sue you directly for damages.
No. A WSI policy pays benefits to your injured worker. A claim from a work-related injury that workers’ compensation does not cover falls under employer’s liability, which in North Dakota is generally written as an endorsement to your general liability policy. Agents often call it stop gap coverage.
Some of it is. Nearly every employer must carry workers’ compensation through WSI from the first day and first dollar of employment. Every registered vehicle must carry state-required auto coverage. General liability is not required of every business, but a license, a lease, a lender, or a customer contract will often require it.