Quick guide: Workers’ compensation in Minnesota

Your small business work comp questions answered


You’ve got a business to run so we’ll tell you what you need to know about workers’ compensation in Minnesota — what it is, who needs it, and where you can buy it.

What is workers’ comp?

Workers’ compensation insurance was created to pay for medical costs and lost wages if employees are injured at work. Benefits can also include payments to compensate for permanent disabilities and to dependents of workers who are killed in job-related incidents. It protects employees from the costs of work injuries and protects employers from lawsuits.

What does workers' compensation insurance cover?

Unlike other lines of insurance, workers’ compensation doesn’t offer different or optional levels of coverage for you to choose. When your policy is in place, it covers every work-related injury considered compensable by Minnesota state law. Workers’ comp benefits are spelled out by state law and don’t vary from policy to policy within the state.

How do I know if I need workers' comp insurance?

If you have any employees, even one who only works part-time, Minnesota law requires you to provide workers’ compensation coverage.

There are just a few exceptions, which are listed in the next question.

Are there any exceptions for family members or small businesses?

There are a few exceptions in Minnesota workers’ compensation law:

  • Sole proprietors or partners along with their spouses, parents or children
  • Some officers of closely held corporations, some managers of limited liability companies and certain relatives are also excluded if certain requirements are met. See Minnesota state law for specifics

How much will it cost?

Your workers’ compensation premium is based on how much your payroll is, how dangerous your industry is, and your business’s history of work injuries. If you have a clean safety record, it can help keep your premium low.

For more on how premium is calculated, see our Workers’ Comp 101 page.

Where do I buy workers’ comp insurance?

You have a couple options: you can use an independent insurance agent (find an agent in your area using the tool on our SFM website) or buy it directly from an insurance carrier like us. To get your workers’ comp coverage directly through SFM, request a quote online or call us at (844) 828-3801.

Where can I get more information on workers’ compensation in Minnesota?

Since workers’ comp coverage is mandated by the state, the Minnesota Department of Labor and Industry’s workers’ compensation page is your go-to source of information. For safety requirements and information, check out the Minnesota Occupational Safety and Health Administration area of their website.

Have other questions?

Find more questions and answers on our Workers’ Comp 101 page, or contact us!

Ready to get started?