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 in 2026 and how to stay compliant.
In Minnesota, there is no minimum number of employees before workers’ compensation coverage is required. That means an employer with even one part-time employee generally must provide coverage.
Under Minnesota law, employers must either:
Purchase workers’ compensation insurance from a carrier authorized to write workers’ comp in Minnesota, or
Obtain approval to self-insure from the Minnesota Department of Commerce.
Also, employers are required to display the workers’ compensation poster where employees can easily see it.
Yes—Minnesota has specific exclusions and special rules for certain types of businesses and workers, and many of these rules are defined in Minn. Stat. § 176.041.
Common examples (depending on your exact situation) include:
Businesses with no employees
Individually/family-run, non-incorporated businesses where the only workers are immediate family
Certain partnership or farm arrangements where only partners (and certain family members) work
Certain closely held corporations, LLCs, family farm corporations, casual employees, and household workers, when specific statutory conditions are met
Important: even when someone is excluded, Minnesota law often allows eligible owners/officers to elect coverage instead.
Workers’ compensation in Minnesota generally provides:
Medical care that is reasonable and necessary to treat and relieve the effects of a work injury
Wage-loss benefits (when eligibility requirements are met)
Rehabilitation benefits in appropriate cases
A key factor that can impact your premium is your experience rating, which reflects your claims history.
Most employers buy a policy from the private market through an agent or directly from an insurer.
If you can’t obtain coverage in the voluntary market, Minnesota offers assigned risk coverage. The Minnesota Workers’ Compensation Insurers Association can help explain how to apply (phone 952-897-1737)
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’ comp in Minnesota can trigger serious consequences, including:
An order to stop employing people until coverage is in place
Civil penalties of up to $1,000 per employee per week for the period of noncompliance
If an injured worker’s benefits are paid by the state’s Special Compensation Fund, the employer can be ordered to reimburse the Fund plus a 65% penalty on those benefits
If the failure to insure is willful and intentional, it may be charged as a gross misdemeanor
Employees should report injuries to their supervisor as soon as possible.
For injuries involving time away from work (or other situations that trigger formal reporting), Minnesota’s reporting deadlines can matter a lot:
The penalty for late filing can be assessed against the employer if the insurer does not receive the First Report of Injury (FROI) within 10 days of the first day of disability (or the date the employer received notice—whichever is later).
If the employer is self-insured, the FROI must be received by the Minnesota Department of Labor and Industry by the 14th day after the first day of disability (or employer notice—whichever is later).
For workplace fatalities and serious injuries, employers must report the incident to the Minnesota Department of Labor and Industry within 48 hours (phone or encrypted email), and then follow up with the FROI.
Separately, Minnesota OSHA Compliance has its own reporting deadlines (for example, fatalities within 8 hours and certain severe injuries within 24 hours).
Minnesota requires the employer to furnish necessary medical care for work injuries.
Provider choice rules can depend on the claim and the employer’s arrangements, so employers should follow insurer/DLI guidance and document everything carefully.
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. With the right coverage in place, you reduce legal exposure, protect your people, and keep your business moving forward with confidence.
Need help getting started? Beyond is here to guide you through setting up a compliant and affordable policy.
