Posted on May 16, 2014

Commercial Insurance in North Dakota

Commercial insurance in north dakota

Protecting North Dakota businesses is what commercial insurance is designed to do, and finding the right information about what coverage is actually needed helps business owners plan ahead and meet their budget while simultaneously protecting their investment.

North Dakota mandates that every company have workers compensation insurance and commercial auto insurance (if the business owns vehicles). While state law does not require businesses to carry general liability or property insurance, the state does recommend that each business obtain these specific coverages to provide the most available protection of asset. Additionally, building contractors are required to have a general liability policy in order to renew their professional licensing.

North Dakota Liability Coverage

All businesses need to consider purchasing liability insurance to protect against claims for bodily injuries or property damage while others are on the business premises or as a result of the actions of company employees. Examples of situations where someone may file a claim against a company would be for a slip and fall, or a company worker damaging a customer's car when loading it with product.

Other forms of liability coverage include errors and omissions insurance, which covers companies in cases of physical or financial injury to someone. This type of coverage is needed especially by professional occupations such as doctors, lawyers, realtors and nurses.

Commercial liability insurance will cover medical expenses of claimant, legal defense costs, bonds and judgment awards.

Workers Compensation Coverage

Every employer in the State of North Dakota is required to carry workers' compensation insurance. Coverage must be in force on the first day and for the first dollar of employment. The only exception to this requirement is for farmers and clergymen.

Workers compensation coverage may only be purchased through the state owned and controlled Workforce Safety and Insurance. This insurance covers employees for medical and disability when they are injured while at work. As a no fault system, workers comp insurance protects employers against civil liability when a worker is injured at work - basically meaning that a company cannot be sued for the workers' injury or illness.

Property Insurance

Commercial property insurance is the most commonly bought business insurance today. It is used to cover buildings and their contents from damage or loss. It will also usually cover the personal property of others when that property is at the place of business of the insured. Some companies choose to add additional property coverage for loss of business income, boilers and even crimes such as employee dishonesty, forgery and kidnapping.

Commercial Auto Insurance

All companies are required to purchase commercial auto insurance if there are vehicles operated for business use. North Dakota requires liability insurance minimums for all private passenger cars, pickup trucks and vans.


$25,000 per person

$50,000 per accident - Bodily Injury

$25,000 per accident - Property Damage

Uninsured & Underinsured Motorist

$25,000 per person

$50,000 per accident - Bodily Injury

Personal Injury Protection

$30,000 per person - No Fault

For commercial vehicles over 20,000 pounds, uninsured and underinsured motorist coverage is not required. Insurance amounts vary from $750,000 to $5 million depending on the type of cargo hauled, with hazardous materials requiring higher limits.

Commercial Flood Insurance

With the significant flooding that occurred in 2009 and 2011, North Dakota business owners will want to protect their valuable property by purchasing commercial flood insurance before the threat of flooding occurs. Flood damage is not covered in most insurance policies so it is important for business owners to seek out a separate policy for flooding.

Commercial flood insurance will cover flood damage up to $500,000 for nonresidential buildings and their contents. It can be purchased directly through your insurance agent or through the National Flood Insurance Program if your community participates in the program. Because most flood insurance has a waiting period before going into effect, planning ahead by applying early is vital to making coverage available when needed.

Crop Insurance for North Dakota

Farmers depend greatly on bringing in healthy crops, but inclement weather can bring frost, hail, storms, droughts and even tornados to wreak havoc on the economic security of North Dakota farmers. Add to that pest, falling crop prices and rising transport and supply expenses, and the financial risk that farmers must endure can ultimately lead to ruined crops and finances. Crop insurance policies provide the added protection that farmers need to have peace of mind and not worry about every possible circumstance that could lead to failure. Basic coverage takes care of paying for crop damage caused by weather, fire, pests or disease. Comprehensive policies can expand the coverage for special situations such as late planting or failure to plant due to weather. Specialty insurance agents can assist North Dakota farmers with the best crop insurance policies for their particular needs.

Additional Information on North Dakota Insurance

Find out more about commercial insurance in North Dakota by calling the state Insurance Department at (800) 247-0560 or visiting the website at

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