Popular Questions about Business Insurance in North Dakota

Business insurance is designed to protect your company against financial losses related to potential hazards such as severe weather events, property crimes, and liability lawsuits. This insurance can prove quite beneficial as is evidenced by the fact that in 2019 alone, businesses in North Dakota collected approximately $1.8 billion in insurance claims.

A local independent agent can help you build a business insurance plan that is customized to meet the specific coverage needs of your North Dakota business.

We live in a litigious society. Statisticians predict that as many as 40% of small businesses are likely to have a liability lawsuit filed against them within the next ten years.

Consider this: customer slip-and-fall injuries are among the most common liability lawsuit faced by businesses. The average amount paid out in liability claims for these injuries is $20,000. That’s a lot of money for a small busines to worry about shelling out.

Here are some other things US companies have been using their business insurance to cover:

  • Theft and burglary: The average cost per claim is $8,000
  • Water damage and freezing pipes: The average cost per claim is $17,000
  • Wind and hail damage: The average cost per claim is $26,000
  • Fire damage: The average cost per claim is $35,000

Talk to a local independent insurance agent to review your company’s risks and to ensure that each is properly covered.

Businesses insurance can help your company avoid large financial setbacks by covering losses, damage, and other expenses associated with a wide variety of covered events.

Here’s are some of the things can expect a well-built business insurance policy package to do:

  • Pay for damage to your business property
    • Example: An accidental fire damages a significant portion of your company’s storeroom. Thousands of dollars worth of inventory is damaged by fire, smoke, and firefighting efforts and must be thrown away.
  • Pay for someone else’s medical bills following an injury
    • ExampleYou fail to properly clear ice from your store’s parking lot after a winter storm, and a customer who slips is badly injured.
  • Pay for accidents involving company vehicles
    • Example: One of your delivery people is distracted by the GPS while driving and accidently hits a pedestrian.
  • Pay for employee injuries and occupational illnesses
    • ExampleAn employee at your manufacturing plant suffers significant burns when an industrial machine malfunctions.
  • Provide a continuation of income during forced closures
    • ExampleA tornado rips the roof off your business storefront and destroys a significant amount of property. It takes weeks before you are able to complete repairs and reopen for business.

Sometimes, the coverage mentioned above may not be enough to fully protect your business against all of its potential risks and exposures. Fortunately, there are many more commercial insurance products and options available, so you can find the policies you need to fully cover your company.

Business insurance policies are not required by law. However, certain types of coverage that you are likely to include in your policy package by be necessary. For example:

  • Commercial vehicle insurance: Businesses that have company-owned vehicles are required by law to cover them with this insurance.
  • Workers’ compensation insurance: With very few exceptions, all employers in North Dakota are required by state law to have this coverage.
  • Contractors liability insurance: Businesses like construction and renovation companies will nearly always be required to show proof of this coverage to potential clients before they can be hired to do a job.
  • Business insurance: Business owners who want to take out a commercial loan or line of credit typically need to show their financial institution proof of certain types of business insurance before they can qualify for funding.

To learn more about the types of coverage you may need to carry, you can consult a local independent insurance agent.

Business insurance rates are calculated according to several factors, including, but not limited to:

  • The type of business being covered
  • The company’s size and annual revenues
  • The value of the business assets being covered
  • The number of employees who work for the company
  • The company’s liability exposures
  • The various products and options being purchased

Coverage needs can vary significantly from one business to the next, so it is best to consult an experienced insurance agent when you are working toward building a suitable and comprehensive policy package.

An independent agent can help you make sure that you are getting the right coverage for each of your company’s potential exposures, and that you are getting it at a competitive price. This is because independent agents are free to work with multiple insurers, so they can easily obtain and compare customized quotes.

Yes! There are currently 43 independent insurance agencies in North Dakota. These agents are ready to help you find the best and most affordable coverage for your business.

Did you know that independent insurance agents can work with several different insurance providers to find you build a comprehensive and competitively priced business insurance portfolio? Sometimes this means building a business insurance portfolio that includes policies from several different insurance companies. Don’t worry. You will still only have one point of contact with your independent insurance agent.

Work with an agent near you to ensure that your business is fully covered against each of its potential risks.

How does business insurance work?

North Dakota Business Insurance Stats

National Business Insurance Stats

Number of businesses in the US: 27,626,360

Burglary rate per 1,000 residents in the US: 3.76

Auto theft rate per 1,000 vehicles in the US: 2.29

CityNo. businessesBurglaries / 1,000 peopleAuto thefts / 1,000 cars
Bismarck6,9963.402.81
Devils Lake7823.833.15
Dickinson3,0221.492.10
Fargo11,3475.562.47
Grafton< 5004.741.66
Grand Forks4,5333.752.19
Jamestown1,1924.811.30
Lincoln< 5000.760.25
Mandan2,0354.624.79
Minot4,6204.363.58
Valley City6924.201.09
Wahpeton7521.532.04
Watford City< 5001.011.39
West Fargo2,8492.810.83
Williston2,1723.722.81
  • 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 close to 3,000 thefts are reported every year, the high crime rate can affect your coverage costs. Talk to a local independent insurance agent to learn what you can do to safeguard your company and lower your costs for coverage.
  • Commercial auto: If your business owns a vehicle or a fleet of vehicles, you will need to cover the cars, vans, truck, 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.
  • Cover 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. Two you may want to consider are:
  • 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 skimmer 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
  • Business Insurance Common Coverage Options
  • Property: You have likely invested a lot of capital invested 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. Find a policy and rate that works for your Bismarck business by teaming up with a local independent agent.
  • 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. A local independent agent can help you find a suitable policy at a competitive price.
  • Cover 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. That is why having the right commercial liability insurance coverage in place is so important. Some of the many commercial liability products you may want to consider include:
  • 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- or part-time employee, you need to have workers’ compensation insurance. This insurance, which can only be purchased through the state, is designed to cover medical treatments, disability pay, and other expenses that are related to occupational illnesses and on-the-job injuries. Having this coverage can save your business from enduring 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. A local independent agent can also help you supplement your coverage with business interruption insurance so you can have a continuation of income if a particularly destructive storm, or even a tornado, forces your business to close for an extended time.
  • 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. If your business engages in interstate commerce, a local independent agent can ensure that your coverage meets all state and federal minimum requirements.
  • Cover against liability risks: It is important that you have the right types of commercial liability insurance covering your 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. Two you may want to look into are:
  • Cyber liability insurance: This is designed to cover the various expenses your company may face if cyber criminals 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 you 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 judgement made by professionals who work for your company in the event that 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. Make sure your business is properly insured by consulting an independent insurance agent near you.
  • Commercial auto: Accidents can happen anywhere, especially on US-52. 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 employee who will be driving them, and the risk of collisions where these employees will be driving.
  • Cover 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 against all of your company’s various liability exposures. Two you may want to consider are:
  • Contractors professional liability insurance: This is specifically designed to cover business 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 because of 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. For example, 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.
  • Cover 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. Examples of two that you may want to consider are:
  • Environmental liability insurance: Companies working in the oil and gas industry, like Halliburton, 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 important. 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.