Workers Compensation Insurance

Minnesota Workers Compensation Insurance

What is workers’ compensation insurance?

Minnesota workers’ compensation insurance is basically a health insurance and disability policy combined together with some new rules. It provides wage replacement and medical coverage to employees who are hurt or injured during their employment. It’s an exchange for the benefits, the employee gives up the right to sue the employer.

How much does work comp cost in Minnesota?

It depends on what you do. There are classifications for each type of work. The riskier the type of work, the higher the rate. A roofer would pay a much higher rate than a plumber and a carpenter would pay a higher rate than an electrician or salesperson for example.

The coverage is then rated on the payroll. There is minimum payroll for ghost or waiver types of policies in Minnesota (no payroll), but most companies will have employees. The higher the payroll, the higher the rate.

Other factors can include the time you have had continuous worker’s compensation insurance coverage and having one-three full-time employees. Also, your claims experience can be a positive or negative factor.

Is worker’s compensation insurance a requirement in Minnesota?

It depends on who you are asking. If you are asking the State of Minnesota and you have employees, then absolutely yes, If you don’t have employees then the answer is no.

Now let’s talk about general contractors. In Minnesota, general contractors are held accountable by an old Minnesota State Statute 176.215. An employer in Minnesota is generally responsible for providing workers comp. for its own employees. The statute is an exception to the rule. If a general contractor’s sub-contractor fails to provide workers’ compensation insurance for their employee(s), the general contractor is liable for the workers’ comp benefits due to the injured employee or the uninsured subcontractor. This is huge and why ghost or waiver policies are written for contractors without employees (zero payroll). It is a safety net for general contractors, but not 100%.

I don’t need workers’ compensation insurance, because I don’t have employees.  According to the state, you are correct. But, it depends on who is asking.  If the company you are working for wants it, then most like you will need to purchase a policy and provide a certificate of insurance.

What can I do to keep my workers’ compensation costs down in Minnesota?

There are several things that can keep your rates under control. Continuous coverage and no claims for a starter. The State of Minnesota requires you have workers’ compensation if you have employees. Putting a gap or lapse in that coverage does not help your rates. Neither does switching carriers each year. Worker compensation companies are smart and not in it to lose money.

We see misclassifications from time to time. Being rated wrong can certainly hurt you. It’s important you’re with an agent that’s sharp and knows what they are doing. We are and do! ☺

A proper risk management program and return to work program are also key to keeping claims and costs down.

Request a quote online or give us a call.

Tell us about your Minnesota business and workers’ compensation insurance needs, we are listening. We will put together a customized insurance plan so you only pay for what you need.  Do yourself a favor and call 952-469-0425 right now or use the quick quote form on this page. Request your Minnesota work comp insurance quote now! You will be happy you did.

P.S. If you haven’t gotten a quote on your general liability insurance or commercial auto insurance, just click these links or ask when you call.  If you’re looking for personal auto and home insurance, please visit Insuring Minnesota.