Workers’ compensation insurance laws and requirements for employers vary from state to state, but private employers can generally choose whether to carry workers' compensation insurance coverage. A workers' compensation insurance policy provides lost wages and medical benefits to employees injured on the job—and death benefits for the spouse and dependents (children) of a worker who dies in a work-related accident.

Under workers’ compensation laws in many states employers who subscribe to workers’ compensation insurance receive a significant legal protection—they cannot be sued by an injured employee (or the estate of a deceased employee) unless the employer was grossly negligent (more negligent than simple, ordinary negligence).

In other words, if an employer has workers’ compensation insurance, that is usually the exclusive remedy for an injured employee (known as the exclusive remedy provision in the statute), and the insurance coverage bars an injured employee from suing the employer (known as the workers’ compensation bar).

An employer who does not purchase or subscribe to workers’ compensation insurance is known as a nonsubscriber. Workers’ compensation laws are usually located in a state’s statutes.

In North Dakota, workers' compensation insurance is mandatory for all employers, with very few exceptions. The state operates under a monopolistic system, meaning that workers' compensation insurance must be obtained through the state-administered fund, Workforce Safety & Insurance (WSI), rather than through private insurance carriers. This insurance provides benefits for lost wages, medical treatment, and rehabilitation for employees who suffer work-related injuries or illnesses, as well as death benefits for dependents of workers who die as a result of their job. Employers in North Dakota are protected by the exclusive remedy provision, which generally limits employees' ability to sue their employers for work-related injuries if the employer has secured workers' compensation coverage through WSI. However, if an employer fails to secure coverage, they can be considered a nonsubscriber and may lose this legal protection, exposing them to potential lawsuits and penalties.