North Dakota Commercial Insurance Requirements: A Comprehensive Guide for Businesses

Oil and Gas Drilling Insurance Requirements

Department of Mineral Resources (DMR) Oil and Gas Division Requirements

The North Dakota Oil and Gas Division, operating under the Department of Mineral Resources, has sole jurisdiction within the state to issue oil and gas drilling permits and regulates drilling and production operations. Key insurance and financial requirements include:

Permit Requirements:

• Prior to filing an application for a permit to drill, companies must register with the Secretary of State’s office to conduct business in North Dakota
• All operators must meet financial assurance and bonding requirements
• North Dakota requires that a bond shall be in the amount of $50,000 when applicable to one well only

Financial Assurance and Bonding:

• All operators must have the required financial assurance and bonding in place and must follow rules and regulations for proper spill prevention, monitoring, and remediation
• The state maintains an Abandoned Well Plugging and Site Reclamation Fund (AWPSRF) funded by fees, gross production tax, and civil penalties
• In the event a North Dakota operator files for bankruptcy, this does not grant approval or consent to bypass rules and regulations and/or walk away from proper decommissioning and cleanup

Oil and Gas Transportation Requirements

Commercial Transportation Insurance

North Dakota relies heavily on trucking to transport goods, with trucking accounting for over 60% of transported goods by weight in the state. Key transportation insurance requirements include:

Mandatory Coverage Types:

• North Dakota requires workers’ compensation coverage provided by Workforce Safety and Insurance (WSI) for all employers, with limited exceptions for farmers and clergy
• Commercial auto liability insurance meeting state minimum requirements
• Motor truck cargo insurance for companies transporting cargo for others
• Non-trucking liability insurance when drivers operate company trucks for personal or business uses unrelated to transporting cargo

Minimum Insurance Requirements:

• Liability coverage of $25,000 per person/$50,000 per accident for bodily injury and $25,000 per accident for property damage
• Uninsured and Underinsured Motorist coverage of $25,000 per person/$50,000 per accident

Underground and Aboveground Storage Tank Insurance Requirements

Underground Storage Tank (UST) Regulations

North Dakota’s Department of Environmental Quality administers the Underground Storage Tank Program, with requirements including:

Financial Responsibility Requirements:

• Proof of financial responsibility for corrective action and third-party liability
• North Dakota has a Petroleum Tank Release Compensation Fund that may reimburse tank owners for certain cleanup activities if a leak or release is discovered

Aboveground Storage Tank (AST) Requirements

The majority of regulations affecting ASTs are found at the state and local level, with North Dakota Fire Marshal’s Office requiring preinstallation application for public fuel-dispensing sites. Key requirements include:

• Registration and permitting requirements
• Environmental liability insurance
• Spill prevention and response coverage

Mining Operations Insurance Requirements

Surface Coal Mining Regulations

North Dakota’s regulatory program has been a partnership effort between the State and the US Department of the Interior’s Office of Surface Mining since 1980. Insurance requirements include:

Performance Bonds and Liability Insurance:

• Chapter 69-05.2-12 covers Performance Bonds and Liability Insurance requirements for surface coal mining operations
• The Reclamation Division evaluates surface mining permit applications and carries out inspections to ensure compliance with program requirements

Coverage Areas:

• Environmental liability insurance
• Reclamation bonding
• General liability coverage for mining operations
• Equipment and property insurance

Subsurface Mineral Regulations

The exploration, development and production of subsurface minerals requires a permit and is regulated under Chapters 38-11.2, 38-12 and 43-02-02 of the North Dakota Century and Administrative Codes. Requirements include appropriate insurance coverage for extraction activities and environmental protection.

Cell Tower and Telecommunications Regulations

Federal and State Requirements

While North Dakota doesn’t have specific state-level cell tower insurance requirements, businesses must comply with federal regulations:

Federal Compliance:

• Building a new tower or collocating an antenna requires compliance with the Commission’s rules for environmental review, including National Environmental Policy Act (NEPA) and National Historic Preservation Act (NHPA) compliance
• Antenna Structure Registration (ASR) with the FCC may be required
• Federal Aviation Administration (FAA) notification for certain structures

Insurance Considerations:

• General liability insurance for construction and maintenance
• Environmental liability coverage
• Professional liability for telecommunications services
• Property insurance for tower equipment and infrastructure

Workers’ Compensation Regulations

North Dakota Workforce Safety & Insurance (WSI)

WSI is the sole provider and administrator of workers’ compensation in North Dakota, operating as an exclusive employer-financed, no-fault insurance system. Key requirements include:

Penalties for Non-Compliance:

• WSI has the authority to issue a Cease & Desist Order to employers without coverage, with penalties of up to $10,000 and $100 per day for each day the violation continues
• Workers may bring suit against an uninsured employer for damages caused by an injury during uninsured periods

OSHA Regulations Specific to North Dakota Operations

Federal OSHA Jurisdiction

North Dakota doesn’t have its own occupational health and safety regulatory program and instead operates under federal OSHA jurisdiction, which covers most private sector workers. Key requirements include:

Training and Compliance:

• OSHA mandates training on certain topics, with 10-Hour and 30-Hour “Outreach” courses recommended as general orientation to safety
• Regulated employers in North Dakota are governed by Federal OSHA standards found in 29 CFR, including workplace poster requirements, injury and illness record-keeping, and industry-specific standards

Consultation Services:

• An On-Site Consultation Program offers free and confidential advice to small and medium-sized businesses, with priority given to high-hazard worksites
• Bismarck State College’s ND Occupational Safety and Health program offers free consultation services to help businesses meet OSHA safety regulations

Industry-Specific Requirements:

• Construction industry: OSHA 10-hour and 30-hour construction training
• General industry: OSHA 10-hour and 30-hour general industry training
• Maritime operations: Compliance with Parts 1915, 1917, and 1918
• Agricultural operations: Compliance with Part 1928

Business Registration and General Insurance Requirements

State Registration Requirements

All businesses must register their business name with the North Dakota Secretary of State. While there is no broad state requirement applicable to all businesses for general liability insurance, the state does require specific insurance for certain activities.

Recommended Coverage

Even when not legally required, businesses should consider:

• Commercial General Liability insurance
• Professional Liability/Errors & Omissions coverage
• Cyber Liability insurance
• Business Interruption insurance
• Directors & Officers liability (for corporations)

Conclusion

North Dakota’s regulatory environment requires businesses to maintain comprehensive insurance coverage across multiple areas. From oil and gas operations requiring substantial bonding and environmental coverage to mandatory workers’ compensation through WSI, understanding these requirements is essential for business compliance and risk management.

Working with experienced commercial insurance professionals familiar with North Dakota’s regulatory landscape ensures your business maintains appropriate coverage while meeting all state and federal requirements. Regular reviews of your insurance portfolio help ensure continued compliance as regulations evolve and your business grows.

For specific questions about your industry’s insurance requirements or to obtain quotes for North Dakota commercial insurance coverage, contact qualified insurance professionals who understand the state’s unique regulatory environment.

This guide provides general information about North Dakota commercial insurance requirements and should not be considered legal or insurance advice. Specific requirements vary by location, business type, and operational scope. Consult with qualified insurance professionals and legal counsel for guidance on your specific situation.