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The A-Z guide to Minnesota Workers' Comp

Minnesota Workers’ Comp Laws

There’s no minimum employee requirement for Minnesota businesses, so workers’ compensation insurance is a requirement regardless of how many people are working for a company or an individual.

Required with

1

employee

All workers, part-time and full time need to be covered by a policy.

Workers’ compensation insurance isn't required for self-employed workers

Is workers’ comp insurance required in Minnesota? 

Yes, workers’ comp insurance is required in Minnesota. Under Minnesota workers’ comp laws, all employees, whether part-time or full time, would need insurance coverage.

In Minnesota, employees are defined as people performing services for a business or another person. This includes minors with employment certifications and immigrant workers. 

Do you need workers’ compensation coverage if you’re self-employed? 

Workers’ compensation insurance isn't required for self-employed workers in Minnesota, but it’s recommended. If self-employed workers have a policy, they can claim medical, disability benefits, and rehabilitation services for work-related injuries or illnesses.

Also, many self-employed workers do jobs for companies that require workers’ comp insurance. Having a policy helps meet those companies' contractual requirements.

Who is exempt from Minnesota workers’ comp requirements?

Here's who is exempt from Minnesota’s workers’ comp requirements:

  • Sole proprietors and their immediate family members
  • Business and farm partners and their immediate family members
  • Executive officers owning at least 25% of the stock in closely held corporations with less than 22,880 payroll hours in the previous year, and their immediate family members
  • Managers owning at least 25% of LLCs with 10 or fewer members and less than 22,880 payroll hours in the previous year, and their immediate family members
  • Farmer-owners, their immediate family, and family farm corporation officers. Employees earning less than $8,000 in the previous year unless certain insurance conditions are met
  • Employees with irregular, one-time, or sporadic work
  • Domestic and maintenance workers earning less than $1,000 in a three-month period unless they earned more than $1,000 in a previous three-month period at the same household
  • Independent contractors, veterans organization members, nonprofit workers earning less than $1,000 annually, Vista volunteers, foster grandparents, and certain railroad employees

How much is workers’ comp coverage in Minnesota?

Your Minnesota workers’ comp rate will depend on the following factors:

  • The type of business you have
  • The size of your payroll
  • Your safety record
  • Claim history
workers comp policy cost

How can Minnesota small business owners save money on workers' comp?

  • Class Codes: Make sure your employees are classified correctly so you aren’t paying higher premiums that can be avoided.
  • Safety Training Program: Create and implement a formal safety training program to reduce workplace injuries.
  • Return-to-Work Program: Create a program that helps injured employees return to work with modified duty options.
  • Drug and Alcohol-Free Workplace: Make your workplace drug and alcohol free to enhance safety and qualify for discounts.
  • Check for Dividends: After your policy term, ask to see if you qualify for dividends for a good safety record.
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How does workers’ comp work in MN?

If you need workers’ comp insurance for your business, start by getting quotes from a few different agents based on your estimated annual payroll. 

Choose the quote that suits you best and finalize the policy, which will last for the next 12 months.

You'll then select a payment plan that fits your cash flow, with options like monthly, quarterly, or pay-as-you-go. At the end of the policy term, the insurance company will audit your actual payroll costs. 

If you underestimated, you'll receive a bill for the difference; if you overestimated, you'll get a refund.

What does workers’ comp cover in Minnesota?

Workers who file a workers' comp claim in Minnesota can receive benefits for the following:

workers comp covers medical bills

Medical bills

workers comp covers lost wages

Lost Wages

workers comp pays death benefits

Death Benefits

Workers' comp coverage also protects employers from legal action. This means that if an employee sues your business because of a workplace injury, the insurance will cover the legal costs of the case.

How to get workers’ comp insurance in Minnesota

The most popular way to get workers’ compensation insurance in Minnesota is from an insurance company. You would get started by getting quotes from insurance agents or online agencies like Kickstand Insurance. 

If you are in a very risky industry or have a bad claims history and you have trouble finding insurance from a regular company, you can get insurance from the state fund. 

It is more expensive so it is not the best option if you can get from a regular insurance company.

Very large companies may be able to self insure if they meet certain requirements.

What can happen if I don’t have workers’ comp insurance in Minnesota?

Employers who fail to comply with Minnesota workers’ comp laws face the following consequences: 

  • A fine for up to $1,000 per employee per every week that the business wasn’t insured. 
  • Prohibition for hiring new employees until the business acquires proper workers’ compensation insurance. 
  • If a worker is injured while working for a business without workers’ comp insurance, a Special Compensation Fund judge will rule if the business is responsible for coverage of that employee’s medical bills or financial obligations. If found responsible, the business will have to reimburse the Special Compensation Fund along with 65% from the lack of insurance coverage fees. 
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FAQS

What are workers’ comp death benefits in MN?

When a worker dies on the job, workers’ comp death benefits offer financial support and coverage to the beneficiaries of the deceased. 

In Minnesota, these benefits include: 

  • Funeral, burial, or cremation expenses for up to $15,000
  • 50% to 66% of a worker’s weekly wages, depending on the number of dependents, over 10 years
  • $60,000 paid in either a lump sum or split into monthly payments to beneficiaries

How do workers’ comp settlements work in MN?

Minnesota workers’ compensation insurance settlements require written agreement between employees and employers.

Settlements require approval and sign-off from a judge and healthcare providers or insurers (also known as intervenors). 

Most employees thinking of settlement should seek legal advice to ensure they get the best from their agreement with employers. 

What are the statutes of limitations regarding workers’ comp in MN?

Worker’s compensation insurance claims in Minnesota are dependent upon the statute of limitations and specific circumstances on a case-to-case basis. 

  • For injury claims, employees have three years from the date of the filed First Report of Injury to claim compensation. 
  • For beneficiaries seeking compensation for a worker’s death, the statute is three years from the time the Minnesota commissioner received written notice of the death from the business employer. 
  • For injured workers in a coma or physically and mentally incapacitated and unable to collect benefits, the statute of limitations is three years from the date that the incapacity ends (as documented by a healthcare provider). 
  • Employers have three years to dispute claims if an employee claims an injury that results in disability while on the job. 

How do I get a workers’ comp insurance policy with Kickstand Insurance?

Start by filling out a short online form about your business. We’ll use that info to get you an estimated quote. Then, one of our experienced agents will contact you to review the quote and make sure you are getting the absolutely lowest rate possible for your business. Once the quote is finalized, you’re ready to buy the policy - often with coverage starting that day!

Learn more about Workers' Comp in Minnesota

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Why does it matter?

  • Avoid surprise bills at audit
  • Make sure all your employees are properly covered
  • Protect yourself from lawsuits

What do we check?

  • Business categorized correctly
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