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Minnesota workers' compensation insurance: Your guide to requirements and getting a policy
If you’re a Minnesota employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
In Minnesota, nearly every employer is legally required to maintain workers’ compensation coverage for both full-time and part-time employees — regardless of how many they employ. Even a single part-time employee generally triggers the requirement.
Unless your business is approved by the Minnesota Department of Commerce to self-insure, you must purchase workers’ comp from a licensed carrier. Additionally, employers must display a workers’ comp poster with insurer information in a visible area at the workplace (provided by the Department of Labor and Industry).
Yes. Some employers are exempt under Minnesota law, including:
Sole proprietors with no employees
Family-run businesses with no workers outside of immediate family
Partnerships or farming operations where only family members are employed
Closely held corporations or LLCs under specific ownership conditions
Casual or domestic employees in certain situations
However, it’s always best to consult state guidelines or legal counsel to determine whether your business qualifies for exemption.
Workers’ compensation in Minnesota generally includes:
Medical costs for injury-related treatment, as long as it’s necessary and appropriate
Partial wage replacement during recovery from an injury or illness
Vocational rehab if the employee can’t return to their previous role
Travel expenses related to medical visits or retraining programs
A key factor in determining insurance rates is your company’s experience rating, which reflects your claims history.
Most businesses purchase a policy from a private carrier in the open market. Large employers may apply to self-insure, but this requires state approval and often involves hiring a third-party administrator to manage claims.
For businesses that struggle to secure coverage — such as startups or those in high-risk industries — Minnesota provides an assigned risk pool, administered by the Minnesota Workers’ Compensation Insurers Association. Interested employers can call 952-897-1737 for details.
Failing to carry workers’ compensation can lead to serious consequences:
Fines of up to $1,000 per employee per week without coverage
Prohibition from hiring until coverage is in place
Reimbursement of all benefits paid to the injured employee, plus a 65% penalty surcharge
If an employee is injured on the job, they should report it to their supervisor immediately. The employer must then complete a First Report of Injury (FROI) form.
If the employee misses three or more calendar days, the employer must send the FROI to their insurer within 10 days. Self-insured employers must report to the Department of Labor within 14 days.
For serious injuries or fatalities, the employer must notify the Department of Labor and Industry within 48 hours via phone or via encrypted email to helpdesk.dli@state.mn.us.
In most cases, employees may choose their doctor for treatment. However, employers may direct the employee to a specific provider under certain circumstances outlined by law.
For Minnesota employers, maintaining a valid workers’ compensation policy isn’t just a legal requirement — it’s a smart way to safeguard your team and your company. Should an incident occur, you’ll be covered.
Need help getting started? Beyond is here to guide you through setting up a compliant and affordable policy.
