Do I need business insurance to start?

Business Insurance Requirements in Minnesota

In Minnesota, business insurance is not universally required to start a business, but certain types of insurance are mandatory depending on your business activities and structure.

Mandatory Insurance Types

• Workers' Compensation Insurance: If you have one or more employees, Minnesota law requires you to carry workers' compensation insurance to cover workplace injuries.
• Unemployment Insurance: Employers must register and pay unemployment insurance taxes if they have employees.
• Commercial Auto Insurance: Required if your business owns or operates vehicles.

Recommended Business Insurance

While not legally required, the following insurance types are important for protecting your business operations:

• General Liability Insurance: Protects against claims related to bodily injury or property damage.
• Professional Liability Insurance: Important for service-based businesses to cover errors and omissions.
• Property Insurance: Covers damage to business property and equipment.

Operational Considerations

Starting your business with proper insurance supports compliance and risk management. Incorporate insurance costs into your budgeting and bookkeeping processes early on.

Ensure you maintain accurate employee records to comply with workers' compensation and unemployment insurance reporting requirements.

As of 2026

Insurance requirements and thresholds may change. Regularly check with the Minnesota Department of Labor and Industry and your insurance provider to stay updated on compliance and coverage options.