Insurance FAQ in North Dakota - Quick Answers
Business insurance premiums in North Dakota will vary and are different for every operation. However, the primary factors used when carriers rate your policies remain the same and are listed below:
- Type of industry
- Number of employees
- Gross annual sales
- Location of business
- Number of company vehicles
- Safety practices in place
- Past claims reported
- Number of years in operation
There are two business policies that are required in North Dakota depending on your business. If you have employees, then you'll be mandated to carry workers' compensation insurance. Likewise, when you have any company-owned autos, commercial auto coverage is necessary at the state minimum limits. All other policies are typically optional, but are useful to consider.
North Dakota businesses will have multiple policy options that will be different for every operation. Here are some of the most common foundational policies used:
- General liability insurance: Pays for a bodily injury or property damage liability lawsuit brought against your operation.
- Workers' compensation insurance: Pays for the injuries of an employee hurt on the job. Mandatory when you have 1 or more employees.
- Property insurance: Covers damage to your business property due to a covered claim.
- Business income insurance: Pays for regular business expenses when a covered loss closes your operation for a period of time.
- Business auto insurance: Pays for a loss resulting from an auto accident with a company-owned vehicle. Must abide by state car insurance laws.
- Professional liability insurance: Pays for a lawsuit against your business due to negligent or harmful advice.
- Commercial umbrella insurance: Provides an additional limit of liability coverage over your underlying business policies.
General liability insurance is likely to be your first policy purchased for your North Dakota small business. Check out how this coverage protects your operation:
- General liability insurance: Pays for a bodily injury or property damage liability lawsuit brought against your operation.
When it comes to offering business health insurance to your staff, it can seem overwhelming. Fortunately, a local independent insurance agent can help pick a plan that adds value to your benefits offerings for your team members. In North Dakota, you're not required by law to provide health coverage with fewer than 50 employees, but some operations do for added perks.
In North Dakota, Hiscox, Nationwide, Hanover, and Progressive are rated among the best insurance companies for small businesses. This is due to their excellent claims service and timely customer service, making them appealing to many.
Do You Know What Your Business Insurance Covers in North Dakota?
Relevant Business Insurance Statistics in South Dakota
- Number of businesses in North Dakota: 73,142
- Burglary rate per 1,000 residents in ND: 3.58
- Auto theft rate per 1,000 vehicles in ND: 2.34
National Business Insurance Stats
Number of businesses in the US: 30,819,176
Burglary rate per 1,000 residents in the US: 3.76
Auto theft rate per 1,000 vehicles in the US: 2.29
| City | No. of businesses | Burglaries / 1,000 people | Auto thefts / 1,000 cars |
| Bismarck | 6,996 | 3.01 | 2.77 |
| Devils Lake | 782 | 3.57 | 2.19 |
| Dickinson | 3,022 | 1.84 | 1.41 |
| Fargo | 11,347 | 6.51 | 3.07 |
| Grand Forks | 4,533 | 3.79 | 1.79 |
| Jamestown | 1,192 | 2.96 | 1.18 |
| Minot | 4,620 | 4.23 | 3.57 |
| West Fargo | 2,849 | 2.99 | 1.39 |
| Williston | 2,172 | 2.83 | 2.87 |
- Fargo, ND
- Business Insurance Common Coverage Options
- Property: Property crimes like theft and arson can lead to expensive losses if you do not have sufficient business property insurance. In Fargo, where property thefts are reported every year, the rising crime rate can affect your coverage costs.
- Commercial auto: If your business owns a vehicle or a fleet of vehicles, you will need to cover the cars, vans, trucks, or buses with commercial auto insurance. Your rates will be based on several factors, including the number and types of vehicles you are covering, information about the workers who will be operating them, and details about where and how often they will be driven.
- Coverage against liability risks: Liability lawsuits can be extremely expensive if your business does not have the right insurance coverage in place. There are several different commercial liability products available for you to include in your business insurance policy package.
- Employment practices liability insurance: This is designed to cover your business if a current, former, or prospective employee sues your company due to perceived illegal practices such as discrimination, harassment, breach of contract, or wrongful termination.
- Cyber liability insurance: This covers your company’s financial obligations to your customers if criminals install skimmers on your credit card readers or hack into your company’s computer system and steal sensitive customer information such as credit card numbers or personal data.
- Bismarck, ND
- Business Insurance Common Coverage Options
- Property: You have invested a lot of capital in your company’s assets like machinery, computers, furniture, inventory, supplies, and more. Business property insurance can help cover the cost of repairing or replacing this property if it is lost or damaged due to a covered event.
- Commercial auto: Many businesses in Bismarck have company-owned vehicles. If yours is among them, you will need to carry a commercial auto insurance policy that meets or exceeds the state’s minimum coverage requirements. Vehicles used for interstate commerce will also need to have coverage that meets federal requirements.
- Coverage against liability risks: If your company finds itself on the wrong end of a liability lawsuit, the costs can add up quickly. Even if the courts ultimately rule in your favor, you can still be on the hook for court costs, legal defense fees, and lost production due to employees needing to take time off work to testify.
- Liquor liability insurance: If your business serves or sells alcohol, North Dakota’s dram laws can leave your company on the hook for damage if you or one of your employees serves an underage patron who then causes injuries or property damage to others while under the influence. Liquor liability insurance can protect your company’s finances in such cases.
- Workers’ compensation insurance: With very few exceptions, if your business has at least one full-time or part-time employee, you need to have workers’ compensation insurance. This insurance is designed to cover medical treatment, disability pay, and other expenses that are related to occupational illnesses and on-the-job injuries. Having this coverage can save your business from a liability lawsuit related to these mishaps.
- Grand Forks, ND
- Business Insurance Common Coverage Options
- Property: Severe storms in the Grand Forks area have the potential to damage your expensive business property. Having sufficient commercial property insurance is therefore imperative.
- Commercial auto: Whether you are insuring a company car or a fleet of semi-trucks, commercial auto insurance can cover your company’s increased liability risks as well as expenses related to property damage to your vehicles.
- Coverage against liability risks: It is relevant for most to have the right types of commercial liability insurance covering their business. In addition to the commercial general liability insurance included in standard business insurance policies, you may need to invest in other types of coverage.
- Cyber liability insurance: This is designed to cover the various expenses your company may face if cybercriminals break into your company’s computer system and steal sensitive customer information like personal or financial data. It can cover restitution, credit monitoring services, and other expenses for which your company may be obligated to pay.
- Professional liability insurance: Also commonly referred to as errors & omissions insurance (or E&O), this insurance is designed to cover against lawsuits related to mistakes or errors in judgment made by professionals who work for your company if they lead to financial, personal, or other harm to your clients.
- Minot, ND
- Business Insurance Common Coverage Options
- Property: Having the right commercial property insurance can shield your company from losses related to hazards like accidental fires, property crimes, and severe weather events such as tornadoes and hailstorms. Adding a commercial flood insurance policy to your coverage portfolio can further protect your business, particularly if it is located near the Souris River.
- Commercial auto: If your business owns a vehicle or fleet of vehicles, you will need to cover them with commercial auto insurance. Rates for coverage can vary according to the number and types of vehicles you are covering, details about the employees who will be driving them, and the risk of collisions where these employees will be driving.
- Coverage against liability risks: Lawsuits can be extremely expensive unless your business has the right types of commercial liability insurance in place. There are several different commercial liability products available for you to choose from when you are building a policy package that will cover all of your company’s various liability exposures.
- Contractor's professional liability insurance: This is specifically designed to cover businesses that do contracting work. It can cover financial losses and damage related to mistakes made by you or your employees as well as by third-party workers hired by the contractor, like architects and engineers.
- Employment practices liability insurance: This can cover your business if you or your employees are accused of engaging in illegal employment practices such as breach of contract, harassment, discrimination, or wrongful termination.
- Williston, ND
- Business Insurance Common Coverage Options
- Property: Property crimes and severe weather events are the most common causes of loss and damage to business property. Another risk is accidental structure fires. A fire could break out at your workplace due to a machine malfunction, an employee error, or even a wildfire. Fortunately, when you have commercial property insurance, your company will have the funds necessary to repair the damage and continue to function without experiencing a large financial loss.
- Commercial auto: You are required by law to have commercial auto insurance if your business owns a vehicle or a fleet of vehicles. Rates are based on a number of factors like the types of vehicles you are covering. It costs more to insure a passenger van than a cargo van since your liability risks are greater when you have passengers. Construction vehicles, semi-trucks, and vehicles used to transport hazardous materials will also need to meet certain liability coverage requirements as mandated by the state.
- Coverage against liability risks: Liability lawsuits can be extremely expensive if your company is not covered by the right insurance policies. There are several different commercial liability products available for you to consider including your business insurance policy package.
- Environmental liability insurance: Companies working in the oil and gas industry have a significant risk of causing environmental pollution. If your Williston company uses or produces toxic substances, it may benefit from the protection offered by environmental liability insurance, which can cover cleanup costs and damage if your company is at fault for the accidental pollution of the land, air, or water.
- Cyber liability insurance: As more and more information is being stored in computer systems, cyber liability coverage is becoming more relevant. It is designed to cover your company’s financial obligations if criminals break into your company’s network and access sensitive customer information like personal, medical, and financial data.