Minnesota workers' compensation insurance: Your ultimate resource
Everything to know about workers’ compensation for
Minnesota
businesses
What does workers’ compensation cover?
A standard workers’ comp policy covers four primary areas: medical expenses, lost wages, employer liability and ongoing rehabilitation. EverPeak policies ensure your crew gets the care they need to return to work safely while protecting your business from the costs of workplace accidents.
Medical care
Coverage for the necessary treatment resulting from a work-related injury or illness.
Lost wages
Partial pay for employees unable to work while recovering from an injury.
Legal protection
Financial support for your business if an employee files a lawsuit related to an accident.
Ongoing care
Rehabilitation and training to support employees re-enter the workforce, and ongoing benefits for permanent injuries.
Death benefits
Financial support for the families.
What are
Minnesota
's workers' comp laws?
With a diverse economy that spans from the bustling urban centers of Minneapolis and St. Paul to the vast agricultural lands and manufacturing hubs, the land of 10,000 lakes protects its workforce across all sectors with its workers’ compensation laws.
Minnesota workers’ compensation insurance ensures that injured workers are fairly compensated for lost wages and medical expenses.
Here’s everything you need to know about Minnesota workers’ compensation.
Understanding Minnesota workers’ compensation insurance
What is workers’ compensation?
Workers’ compensation is a state-mandated insurance program for nearly all employers in Minnesota. Employers are required to have an active policy before hiring their first employee. Workers’ compensation is designed to provide employees who suffer work-related injuries or illnesses with medical treatment and indemnity benefits.
Without workers’ compensation, the cost of a work-related injured employee’s medical treatment could become the responsibility of your business.
Minnesota workers’ compensation rules and laws
The Minnesota Department of Labor and Industry Workers’ Compensation Division administers the workers’ comp law in the state.
Passed in 1913, the Minnesota Workers’ Compensation Act requires employers with one or more employees to be covered by an active workers’ compensation insurance policy.
Businesses can obtain workers’ comp coverage through a partner like EverPeak Insurance. Alternatively, companies that meet the state’s requirements may also apply to be self-insured.
Some Minnesota businesses with high-risk levels may need an insurance agent to buy coverage through the assigned-risk pool. Employers can contact the Minnesota Workers’ Compensation Insurers’ Association for more information on the assigned-risk pool.
In Minnesota, workers’ compensation cases are "no-fault," which means that the amount a claimant receives will not increase or decrease regardless of who was at fault.
Who is covered and exempt from
Minnesota
workers' comp?
Who is covered?
Policies include protection for full and part-time workers.
Some Minnesota workers’ comp exemptions may include, for example:
- Household employees in a private home earning less than $1,000 over three months.
- Farm workers who don’t exceed certain income thresholds, as well as the employer’s immediate family members.
- Casual employees who do not work during the business’s regular operating hours or work just once or infrequently, not permanently or regularly.
Covered injuries and illnesses
Workers’ compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases that may develop over time due to job conditions.
Benefits provided
Workers’ comp insurance provides three types of benefits for work injuries:
- Medical benefits
- Lost wages
- Death benefits
Minnesota workers’ comp benefits include:
- Medical treatment for work-related accidents, injuries and/or illnesses
- Temporary disability benefits
- Permanent disability benefits
- Death benefits
Minnesota workers’ compensation rates
Employee workers’ compensation lost wage pay is 66 ⅔% of their average weekly wage.
As of 2023, the maximum Minnesota workers’ comp weekly benefit is $1,363.74.
How much does workers’ comp cost in
Minnesota
?
How do you file a workers’ compensation claim in
Minnesota
?
Filing a workers’ compensation claim
In the event of a work-related injury or illness:
Step 1: Employee reports injury to employer
Employees in Minnesota should report their injury to their employer immediately. Within ten days of learning about the employee’s injury, the employer must fill out a First Report of Injury (FROI) form and file it with their workers’ compensation partner.
Step 2: Seek medical care
The employee should immediately seek medical attention.
Step 3: Receive benefits
If the workers’ compensation claim is accepted, an injured employee may begin to receive workers’ compensation benefits, such as lost wages and medical benefits.
Step 4: Return to work
Following their recovery, a worker is expected to resume work safely. If a work injury has left an injured employee unable to do any type of work, the employee might be entitled to permanent disability benefits.
Choosing a healthcare provider
In Minnesota, if a managed care plan covers a business’s employees, the injured worker must select a doctor from the plan or a provider selected by the workers' compensation partner.
Compensation for missed work
Injured workers do not receive wage-loss benefits unless the disability results in ten or more calendar days of missed work. Wage-loss benefits will also be paid for the waiting period.
Resolving disputes
Injured workers who disagree with their claim outcome can file an Employee’s Claim Petition form at the Minnesota Office of Administrative Hearings.
How to get workers’ compensation
Insurance requirements for employers
Generally, unless exempt, employers in Minnesota must carry workers’ compensation insurance or qualify for self-insurance. Compliance with this requirement is essential to protect both the employer and employees.
Choosing the right insurance provider
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
FAQs
Enforcing safety protocols, providing proper employee training, maintaining a clean and hazard-free work environment, and regularly reviewing safety practices can significantly reduce workplace injuries.
Your premium is primarily determined by your industry payroll classifications, geographic location and total annual payroll. Your business’s safety history can also play a major role in determining your final rate. Three key factors influence your base insurance rate:
- Industry classification codes: Higher-hazard trades naturally carry higher baseline rates.
- Geographic location: Rates and statutory benefit structures fluctuate heavily by state lines.
- Historical safety record: Maintaining an accident-free workplace lowers your Experience Modification Rate (E-mod), resulting in built-in premium discounts.
Most states require businesses with employees to carry workers’ compensation insurance to stay compliant. Requirements vary by location, but having coverage ensures your business is protected and your team has access to benefits if an injury occurs.
Employees can verify online if their employer has coverage through the state’s online search tool.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensures the necessary steps are taken to initiate the workers' compensation claims process.
Whether you need coverage for contractors depends entirely on your state’s specific regulatory definitions and formal worker classification tests. Since misclassification regulations are highly complex and can lead to severe audits or stop-work orders, it’s vital to ensure your entire labor force is properly verified and protected based on the actual day-to-day work they do.
Learn more: Do independent contractors need workers’ compensation?
In most cases, employees in Virginia are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
In Virginia, employers who fail to procure or sustain the appropriate workers' compensation coverage for their employees may face civil fines of up to $250 per day of non-compliance. Failure to adhere to this requirement can reach a maximum of $50,000 in fines.
Workers’ compensation is a form of insurance that benefits employers and employees in the case of a work-related injury or illness.
Why choose EverPeak for workers’ comp coverage?
EverPeak protects the hardest-working businesses in (state) with simple, reliable workers’ comp starting as low as $18 a month. Backed by over a century of specialized experience, customers get multi-state coverage, fast and easy claims support, and a vast network of brokers.