Do I need workers compensation insurance?

Workers Compensation Insurance Requirements in Minnesota

In Minnesota, businesses must understand their obligations regarding workers compensation insurance to ensure compliance and protect their operations.

When Is Workers Compensation Insurance Required?

• Mandatory Coverage: If your business has one or more employees, you are generally required to carry workers compensation insurance.
• Exception for Sole Proprietors and Partners: Sole proprietors and partners are not required to carry coverage for themselves but must cover any employees.
• Seasonal and Part-Time Employees: All employees, including seasonal and part-time workers, must be covered under your policy.

Operational Considerations

• Business Registration: Ensure your business registration with the Minnesota Department of Labor and Industry is current to facilitate insurance compliance.
• Insurance Providers: You can obtain workers compensation insurance through private insurers or the Minnesota Workers' Compensation Assigned Risk Plan if you have difficulty securing coverage.
• Payroll Integration: Integrate workers compensation premiums into your payroll system to maintain accurate bookkeeping and budgeting.
• Employee Classification: Properly classify employees to determine accurate premium rates and avoid compliance issues.
• Recordkeeping and Reporting: Maintain detailed records of employee injuries and claims as required by Minnesota regulations to streamline reporting and audits.

As of 2026

As of 2026, Minnesota requires most employers with employees to have workers compensation insurance. Staying updated with the Minnesota Department of Labor and Industry will ensure your business remains compliant with any changes to coverage thresholds or reporting requirements.