As a business owner, it is important to be prepared. Not only do you want to ensure that your employees have everything they need in order to succeed, you also want to keep them — and your business — safe. This, of course, means maintaining a functional workplace free of potential hazards.

But it also means preparing for the unexpected.

That’s why it’s a good idea to have workers’ compensation insurance. A workers’ comp insurance policy provides financial coverage in the event of work-related injury and illness. If an employee is hurt on the job, workers’ comp can help cover their expenses, while keeping the business from paying out of pocket.

Workplace injuries can make it difficult for someone to continue making a living. Some of the most common workers’ compensation claims include:

• Concussions
• Sprains and broken bones
• Puncture wounds
• Lacerations
• Strains

When it comes to workers’ compensation requirements, it varies from state to state. Let’s dissect workers’ compensation insurance requirements and costs for Minnesota.

Do All Businesses Need Workers’ Compensation Insurance in Minnesota?

While some states require businesses to obtain coverage only if they exceed a certain number of employees, all businesses in Minnesota are required to have workers’ comp coverage if they have employees. Whether a business has one part-time employee or an entire team of full-time workers, they must carry workers’ compensation insurance.

Two of the more common exceptions to this requirement are:

• State-run employers
• Employers who qualify and elect to self-insure

The Minnesota Workers’ Compensation Act indicates that employees are covered, regardless of who was at fault for the incident. However, benefits are limited and might not include what the employee could receive in a favorable court ruling.

Penalty for Not Having Workers’ Comp in Minnesota

Workers’ comp in the state is administered by the Minnesota Department of Labor and Industry. Employers have 10 days to comply and obtain adequate workers’ comp coverage. If a business falling under the Minnesota Workers’ Compensation Division rules fails to obtain the required insurance, they could face several penalties.

The employer may be asked to pay a fine of up to $1,000 per employee for every week they have been uninsured, whether or not a workplace injury occurred in that time period.

If an employee of an uninsured business suffers an eligible injury in the workplace, they may request benefits from the Special Compensation Fund. A compensation judge will then assess the employer’s liability for the employee’s injury. If the employer is found liable, the Special Commission Fund will compensate the employee and the employer will be ordered to repay the Special Compensation fund 65% of the benefits that the fund paid out.

How Much is Workers’ Comp Insurance in Minnesota?

Like any MN business insurance policy, your Minnesota workers’ compensation insurance premium will be determined by a number of factors. The primary factors that influence your premium are:

• The number of people you employ
• Your total payroll
• Your business’s industry
• The loss history of your business

A licensed insurance agent will take all of these factors into consideration — as well as any other appropriate details about your company — when quoting your business for workers’ compensation insurance.

Minnesota Workers’ Compensation Insurance Rates

Workers’ compensation insurance rates can be confusing. With so many factors being taken into account, it can be difficult to visualize what your rate could end up being.

In Minnesota, businesses are categorized into different classification codes. The classification system groups together business types and industries that have similar degrees of workplace risk.

An accountant, for instance, may face a similar amount of risk in the workplace as other clerical workers. Someone who works in gas line construction and maintenance, however, usually faces much greater risks at work. According to the latest data from the Minnesota Workers’ Compensation Insurers Association, the minimum cost for workers’ comp for in-house accountants is $195, while the minimum premium for gas construction workers is $299.

Information about other classifications can be found here.

Workers’ Comp is Important — We Can Get You Started

Getting workers’ compensation insurance may seem daunting. It doesn’t have to be. We understand that your business is not just important — it’s also your livelihood. We’re here to help you keep your employees — and your business — protected.

Start your workers’ compensation insurance quote with us today. Simply Business partners with small businesses to find insurance that works for their specific needs. Tell us about your business and how we can help. We’ve got you covered from here.

What Injuries Are Not Covered by Workers’ Comp in Minnesota?

While workers’ comp insurance is designed to provide support for employees with work-related injuries, not every injury is eligible for compensation. The following injuries are not covered by workers’ comp in Minnesota.

Mental injuries

Workers’ comp will not reimburse for mental injury. The only exception is PTSD. In order to have someone’s PTSD treatment covered, it must be diagnosed by a licensed psychiatrist and meet the official criteria for PTSD, as laid out in the most recent Diagnostic and Statistical Manual of Mental Disorders.

Intentional injuries caused by a separate party

If an injury is intentionally caused by a third party — co-worker or not — and was not directed at the victim specifically because they were an employee, workers’ comp will not cover the subsequent costs.

Intentional self-inflicted injuries

If an employee’s injury was both intentional and self-inflicted, it will not be covered by workers’ compensation law.

Injuries occurring while intoxicated

According to the workers’ compensation law, if an employee’s injury was caused by intoxication, it will not be compensable.

Injuries due to willful negligence

If an injury was caused by the employee’s willful negligence, it is not eligible for workers’ compensation.

Minnesota Self-Insured Workers’ Compensation

An employer may elect to self-insure rather than obtain workers’ compensation insurance. However, the employer must qualify for this option by proving ability to pay compensation in the event an employee is sick or injured. The requirements for self-insurance include:

• Completing an application and providing five years of audited financial statements. These will confirm the employer’s net worth, assets, and liabilities.
• Demonstrating a positive net income.
• Paying a $4,000 application fee, $400 application fee to join a group of self-insured employers, and a $500 annual report fee.

Additional details on the application and qualification process can be found here. A Minnesota self-insurance license is valid for two years. The U.S. Department of Commerce can revoke a license if the employer has failed to meet the requirements or no longer qualifies due to financial changes.