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North Dakota asks facility-based programs to carry liability insurance — and sells the other coverage itself. The licensing rules require liability coverage for bodily injury and property damage at facility-based child care, plus insurance on any transportation the program provides. Workers’ comp is monopolistic: WSI, the state fund, is the only seller, covering all employees — seasonal and occasional included — before work begins.
One policy, priced for a North Dakota daycare
Next Insurance writes daycare general liability with abuse & molestation coverage, plus commercial auto and workers’ comp where states allow, as one bundle — quoted online in minutes.
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What North Dakota Actually Requires
| Coverage | North Dakota requirement |
|---|---|
| Liability insurance | Required for facility-based programs — bodily injury and property damage coverage; transport requires its own insurance |
| Workers’ compensation | WSI state fund ONLY, all employees, before work begins — private WC policies are not valid in North Dakota |
| Premium deductions | Illegal — no portion of the WSI premium may come from employee wages |
One Policy From the Market, One From the State
North Dakota’s split mirrors its neighbors’ monopolistic systems: the liability policy comes from a private carrier and sits in the licensing file; the workers’-comp account lives with Workforce Safety & Insurance and must exist before the first shift — the occasional helper for one big enrollment week is inside the requirement.
Uninsured operation on the WSI side carries personal liability for claim costs plus civil and criminal exposure, and out-of-state programs crossing into North Dakota need a WSI account regardless of their home-state coverage.
The Coverages Every Daycare Carries Regardless
- General liability with abuse & molestation coverage. The playground injury and the allegation are different claims; a daycare policy without A&M cover is missing the exposure the business is actually judged on.
- Commercial auto if you transport children — a personal policy excludes business use.
- Workers’ compensation once you employ staff — in North Dakota, only from the WSI state fund, before work begins.
- Property and contents for the build-out, equipment and food stock.
Parents ask if you’re insured. So do licensors.
A certificate of insurance answers both in one page. Quotes are free and don’t require a phone call.
Affiliate link — we earn a commission at no cost to you.
Frequently Asked Questions
Is liability insurance required for a North Dakota daycare?
Yes for facility-based programs — the licensing rules require liability insurance against bodily injury and property damage, and programs providing transportation must insure it. Workers’ comp comes separately — and only — from the WSI state fund.
Can a North Dakota daycare buy workers’ comp from a private insurer?
No. North Dakota is monopolistic: coverage comes only from Workforce Safety & Insurance, must cover all employees including seasonal and occasional workers, and must be in place before they begin working.
Comparing states? See daycare insurance requirements in every state, or the full guide to starting a daycare in North Dakota.
Sources
| Source | What it confirms |
|---|---|
| N.D. Admin. Code ch. 75-03-09 | Facility licensing rules incl. insurance provisions |
| ND WSI | The exclusive state fund; before-work coverage |
