National Average Cost of Workers' Compensation Insurance

Healthcare $1,825 Per $100,000 payroll

Retail Trade $2,850 Per $100,000 payroll

Construction $7,430 Per $100,000 payroll

Workers' Compensation Insurance Laws in Minnesota

Minnesota requires that all businesses with employees obtain workers' compensation insurance. If you're an employer, you may be able to exempt yourself from the policy, but you usually have to prove that workers' comp coverage is in place. The coverage must meet or exceed state minimum workers' compensation insurance limits to comply. 

Common Workers' Compensation Claims in Minnesota

The Top 5 industries with the most fatal occupational injuries, in order:

  1. Construction
  2. Transportation and warehousing
  3. Manufacturing
  4. Crop farming
  5. Landscaping

The Top 7 most reported fatal injuries are, in order:

  1. Violence and other injuries by persons or animals
  2. Transportation incidents
  3. Fires or explosions
  4. Falls, slips, trips
  5. Exposure to harmful substances or environments
  6. Contact with objects and equipment
  7. Overexertion and bodily reaction

According to statistical data, 67 workers' compensation incidents in Minnesota turned fatal in one recent year. Fortunately, workers' compensation insurance can pay for burial expenses if the worst should happen.

FAQ: Workers' Compensation Insurance in Minnesota

Workers' compensation insurance is required by law in Minnesota. You'll need to understand coverage and obtain the state minimum limits if you're an employer. Here is what your business's workers' compensation insurance will cover:

  • Any employee that is injured resulting from their job duties.
  • Any employee that becomes ill resulting from their job duties.
  • Any employee whose death results from their job duties.

Each Minnesota workers' compensation policy will be different, which means individualized premiums. Costs will depend on your varying risk factors like loss history, experience, payroll, and limits. Workers' compensation is rated within a predetermined range per job category. In Minnesota, these are the most current rates per industry, per $100 of employer payroll:

IndustryLow CostHigh Cost
Carpet cleaning$2.16$6.17
Dry Cleaning & Laundry Service$2.16$6.17
Machine Shop$2.16$6.25
Garage Door Installation$2.90$8.29
Salvage Yard-Auto Recycling$4.29$12.27
Masonry Construction$5.11$14.60
Door & Window Installers$3.37$9.62

In short, yes. Minnesota requires all business owners with one or more employees to carry the state minimum limits of workers' compensation coverage or greater. If you're found without proper protection, your operation will be liable for any damages and could face stiff fines, and refrain from employing any person without insuring them.

Your business's workers' compensation policy will protect against different incidents that arise due to an employee's workplace injury or illness. Some losses that would be covered under your Minnesota workers' compensation insurance are below: 

  • Traumatic injuries
  • Repetitive injuries
  • Some mental or cognitive injuries
  • Occupational illnesses/diseases

Exclusions will be present under your workers' compensation coverage. Your Minnesota workers' compensation carriers typically don't include the following incidents:  

  • Intentional injuries or illnesses
  • Injuries or illnesses sustained outside of work
  • Injuries or illnesses sustained while committing a crime
  • Injuries or illnesses sustained under the influence of drugs or alcohol

A certificate provides evidence of insurance to the requesting party. This includes your policy limits, expiration dates, and a qualifying signature. Your licensed agent can obtain a workers' compensation insurance certificate for free. Some entities may ask for proof of coverage in Minnesota:

  • The government
  • Individuals you do work for or with
  • Businesses you do work for or with
  • Anyone you do work for or with

If you're considering an independent insurance agent for your workers' compensation coverage, there are some things you need to know. Below are reasons why it may be beneficial to have an independent agent:

  • They do the quoting for free.
  • They work with multiple top markets at once.
  • They work on your behalf and in your best interest.
  • They can shop with different carriers at renewal time.

Workers' compensation benefits paid to the employee in the event of a loss are not considered taxable income in Minnesota. Consult with your tax professional for guidelines about your business.

What Are the Best Workers' Compensation Companies in Minnesota?