Every individualist I know, including myself since I consider myself one, believes that a state is necessary to resolve and mediate disputes between individuals

Every individualist I know, including myself since I consider myself one, believes that a state is necessary to resolve and mediate disputes between individuals. So I don't think this is a violation of individualism. Even Objectivists believe in the courts and police. The key is that the state is there to protect individual rights, that's it.