Sources reviewed October 27, 2026 · Confirm current rules with the agency
When coverage is required
Minnesota generally requires workers' comp even if you have only one part-time employee. There is no minimum number of workers that lets you skip coverage. The law has a few narrow exceptions, but the Department of Labor and Industry suggests you check your own situation. Do not assume casual or part-time work is left out.
Owners, contractors, and exceptions
Check owners, family workers, and contractors with your insurer or the Department before you leave anyone off the policy. Keep records of what each person really does and how the business is set up. If you hire someone, change your business type, or add a new location, ask whether an opt-out or exception you used before still applies.
If an employee is injured
Workers should report an injury quickly, ideally in writing, and keep a copy. Send injury details that involve medical care or lost time to your insurer. Your insurer must file a report within 14 days if the worker is disabled for more than three days or has a permanent disability. Serious injuries and deaths must be reported sooner. Do not wait until the insurer's deadline to send the first facts.
Operating without coverage
The Department of Labor and Industry can fine an uninsured employer up to $1,000 per employee for each week without coverage. It can also order you to get insurance and stop employing workers until you do. If an uninsured employee is hurt, the Special Compensation Fund may pay benefits. You then must pay the fund back, plus a penalty equal to 65% of those benefits. Respond to a Department order within ten days, or it becomes final.
How to arrange coverage
Buy a policy from a licensed insurer or get approval from the Department of Commerce to self-insure. Get reporting instructions from your insurer, and decide who will send wage records and work status updates. Keep proof of the first report and all later letters, so any questions about treatment, time off, or payment can be settled with a full record.
Benefits and return-to-work planning
A work injury can lead to medical care, time off work, a lasting disability, or benefits for family members if a worker dies. Who qualifies, waiting periods, how wages are figured, and benefit limits all depend on state law and the facts of the claim. Ask your insurer which benefits it is looking at and what records it needs. Go by the doctor's work limits, not your own guess about what the worker can do. If you can offer lighter work, describe the duties and hours clearly and plan it with the doctor and your insurer.
Preparing an accurate cost estimate
Gather payroll by job and location, a description of each type of work, details on working owners, subcontractor records, and your past claims. Ask the insurer to confirm your job classes, how the rate is figured, any experience modifier, the minimum premium, fees, and audit terms. This site's calculator uses a base rate that you enter. It does not give a state-approved rate or a real quote. Compare offers using the same numbers, and track staff and work changes during the year so the final audit is easier.
Forms, posters, and notices
These links go straight to Minnesota’s official forms. Your insurer can often send a poster with your policy details already filled in.
Weekly benefit limits
These limits cap the wage replacement checks an injured worker can get. Medical care is paid separately. Limits change every year, so check the source for the latest figures.
- Maximum
- $1,594.08 a week
- Minimum
- $318.82 a week
- Applies to
- Starting October 1, 2026
Check a contractor’s coverage
The Department of Labor and Industry runs an insurance verification lookup. Its employer pages explain how coverage is checked.
Owner exemptions and elections
Minnesota has a form to exclude certain relatives of executive officers. Owner choices are usually made through your insurance policy. Ask your insurer which owners are included or left out, and get the answer in writing.
Frequently asked questions
Is workers' comp required in Minnesota?
Yes. Minnesota requires coverage even with one part-time employee. There is no minimum headcount.
Do business owners need workers' comp in Minnesota?
Limited exceptions apply to certain owners and family members. Check your specific situation with the Department of Labor and Industry before excluding anyone.
How long does an employee have to report a work injury in Minnesota?
Employees should report quickly, preferably in writing. The insurer files a report within 14 days for injuries causing more than three days of disability.
What happens if a Minnesota business doesn't have workers' comp?
DLI can fine up to $1,000 per employee for each week without coverage. If the state pays a claim, the employer repays it plus a 65% penalty.
How do I get workers' comp insurance in Minnesota?
Buy from a licensed insurer, or get Department of Commerce approval to self-insure.
How much does workers' comp cost in Minnesota?
Cost depends mostly on your job class codes, the payroll in each class, your experience modifier, and the insurer's rates and minimum premium. Ask a licensed insurer or agent for the base rate for your class code in Minnesota, then use this site's calculator for a rough estimate. Your final premium is set at the yearly audit.
Your next steps
Official sources & further reading
Minnesota DLI: who needs coverageMinnesota DLI: reporting a work injuryMinnesota DLI: fines and penalties for failure to insureThis summary is for learning, not legal advice. Exceptions and changes may apply. If anything here differs from the official agency or the law, they are what count.