In the state of Minnesota, there were 4.1 workers’ compensation claims per 100 full time workers in 2019, the most recent year that data is available. The average length of time it takes for an employee to recover from a workplace injury or illness is just over 14 weeks. That’s according to the Minnesota Department of Labor.
Do the math:
- The typical small business with 100 employees could expect four workers to experience significant workplace related injuries or illnesses in a given year.
- A business that has 25 employees could experience one similar type of on-the-job injury or illness annually.
- A small business with just ten employees could have a serious work-related injury every two and a half years.
Add to this that, on average, 80 people die on the job every year in Minnesota.
Ask yourself: Would you be able to pay for medical care, lost wages, death benefits or damages if an employee or their family sued you over a work-related injury or illness?
The answer for most businesses is NO.
When you consider the likelihood of workplace incidents, even for the most by-the-book businesses, you can understand the value of workers’ compensation insurance.
It helps pay medical costs, lost wages, worker retraining, funeral expenses, family death benefits, and more if an employee is injured or becomes sick for work related reasons. It eliminates the risk of you being sued by a worker if something happens to them on the job.
In this article, we’ll cover:
- The 5 best workers’ compensation insurance companies in Minnesota
- How does Minnesota workers’ comp work?
- Who needs workers’ comp coverage in Minnesota?
- Do Minnesota business owners need workers’ compensation coverage?
- What does workers compensation insurance cover in Minnesota?
- What doesn’t workers compensation insurance cover?
- How is workers compensation insurance different than general liability insurance?
- How much does workers compensation insurance cost in Minnesota?
- How to find cheap workers compensation insurance in Minnesota
5 best workers’ compensation insurance companies in Minnesota
We reviewed many companies that offer workers’ compensation insurance in Minnesota to come up with our top five for different reasons.
- CoverWallet: Best for businesses in Minnesota that want to compare quotes quickly
- The Hartford: Best for businesses that want to partner with a sound and ethical insurer
- Next: Ideal for Minnesota business owners who prefer to buy insurance online
- THREE: Best for all-in-one business insurance that includes great workers comp coverage
- Cerity: Our top choice for stand alone workers’ comp coverage in Minnesota
CoverWallet: Best for businesses in Minnesota that want to compare quotes quickly
CoverWallet is a cutting-edge insurance provider. The firm has developed its own state-of-the-art platform, based on its own algorithms, to ensure it is able to connect small businesses with workers’ compensation insurance and all the types of business coverage they need, at the most reasonable price. The platform makes it quick and easy to get quotes from several providers at once, making it possible to compare quotes from highly reputable insurers all on a single screen.
The firm’s experts have used their extensive experience to make sure you only have to input the information required to generate quick and accurate quotes. The entire process should take ten minutes or less.
You can feel confident knowing that CoverWallet is a part of Aon, an established company that provides advice to businesses on things like risk, health and retirement.
Once you get your quote, CoverWallet makes it easy to purchase workers’ comp insurance online or through an agent. When you get your policy through CoverWallet, it’s simple to manage your coverage online, including downloading a certificate of insurance, filing a claim, renewing your insurance, and more.
Here’s a sample Minnesota workers’ compensation quote from CoverWallet.
The Hartford: Best for businesses that want to partner with a sound and ethical insurer
The Hartford is one of the oldest companies of any kind in America. It’s been offering insurance solutions for more than 200 years and has helped one million plus businesses with their insurance needs. The company takes pride in the fact that the Ethisphere Institute named The Hartford a World’s Most Ethical Company twelve times. The Hartford’s longevity and focus on ethics makes it a company that you can feel good about entrusting your business to.
The Hartford offers some unique features as part of its workers’ comp insurance coverage including:
- A preferred medical provider network which makes it easy to get access to medical professionals all over Minnesota experienced in treating workplace injuries.
- A prescription drug program that includes drug stores all over Minnesota that are able to fill prescriptions, usually with no out-of-pocket costs. The program also includes convenient mail order service.
- The needle stick reimbursement program helps pay for the initial testing of someone who works for you and their patient if the worker gets pricked by a needle. It also pays for ongoing testing, if necessary.
- The nursed back to health program has experienced nurses to help coordinate medical care and provide therapeutic and other forms of support.
- Pay as you go billing solutions that base your workers’ comp coverage on your actual payroll. This is great for companies that have a regularly changing workforce and want to get better control over their cash flow.
The Hartford is a solid and ethical insurance provider you’ll feel good about working with.
Here is a sample workers’ comp quote for a small advertising agency from The Hartford.
Next: Ideal for Minnesota business owners that prefer to buy insurance online
Next is changing how businesses purchase workers’ comp insurance and other coverage.
Their operation is focused on delivering the ultimate online insurance experience. Because of this, you’re able to purchase a policy, file a claim or get a certificate of insurance any place, any time, 365 days a year. Even though Next is an online insurer, you can get expert help over the phone when you need it. The firm is also known for being able to make most claims decisions within 48 hours.
Even though Next is a relatively new and innovative company, you can rest assured knowing it has an excellent rating from A.M. Best, an insurance company rating agency. All the company’s policies are backed by MunichRe, an established insurance company and reinsurer. More than 10,000 business owners have turned to Next for their insurance needs. The firm has earned a solid 4.7 customer rating for its business coverage.
THREE: Best for all-in-one business insurance that includes great workers comp coverage
If you prefer a single source for all your business insurance coverage, THREE could be the solution for you. It protects all aspects of a business, including people, property and operations, in a single comprehensive business insurance policy.
THREE makes protecting a business easy.
You can also rest assured knowing that THREE is a part of the solid and established Berkshire Hathaway family of companies.
Cerity: Our top choice for stand alone workers’ comp coverage in Minnesota
Cerity makes our list of top workers’ compensation providers because it specializes in the coverage. It currently does not offer a Business Owners Policy or other types of insurance. It’s a relatively low cost provider, yet delivers a high level of service. Policies start as low as $25 per month and the company has fewer fees than most insurers. Cerity makes it fast and easy to get a quote online.
Cerity isn’t low cost because it cuts corners. It actually uses artificial intelligence to up its efficiency. However, everything at Cerity isn’t technology based. When you require help with your workers’ comp insurance, you will have access to a team of licensed policy and claims experts. You can rest assured knowing Cerity has been in business for more than a century and is rated highly by their clients.
How does Minnesota workers’ comp work?
In Minnesota, workers’ compensation is a no-fault system that provides benefits to employees who are injured or become ill because of employment related activities. It also helps limit the risk of employee lawsuits against employers. Because Minnesota workers’ comp is a no-fault system, the employee does not have to prove negligence on the part of the employer to make and prove a claim. It also means the employer cannot use negligence on the part of the employee to defend a claim. It’s a win-win for both employees and employers, helping them work together to make it through even the most challenging workplace injury or illness situations.
In the state of Minnesota, a work-related injury is defined as any condition that’s caused, aggravated or accelerated by work related activities. This includes:
- traumatic injuries
- repetitive type injuries, including things like carpal tunnel syndrome
- occupational diseases
- mental injuries, such as post-traumatic stress disorder (PTSD)
- illnesses that result from exposure to toxins in the workplace.
An employee only needs to show that work related activities were a significant contributing factor to the disability or need for medical care.
Who needs workers’ compensation insurance in Minnesota?
All Minnesota businesses with employees must carry workers’ comp coverage. This is a requirement even if a business has only has a single employee who works part-time.
Even though most Minnesota employees must be covered by employer-provided workers’ compensation insurance, some worker categories are exempt, including:
- Household employees who work in a private home and make less than $1,000 over a three-month period. If you work as a nanny, see our article the best workers comp insurance companies for nannies
- Farm workers who don’t exceed certain income defined thresholds, as well as the farmer’s spouse, parent or child
- Casual employees who do not participate in normal business operations or work just once or infrequently.
Do Minnesota business owners need workers’ compensation coverage?
Even if you’re a single person business, it’s a good idea to have workers’ comp coverage. If you’re ever hurt on the job, it’s likely your health insurance provider will deny the claim, forcing you to pay costly medical bills out of pocket.
However, certain Minnesota business owners aren’t required by law to carry workers’ compensation coverage, including:
- Sole proprietors and independent contractors
- Partners that own the business
- Corporate officers that own the business
- Members of an LLC
What does workers compensation insurance cover in Minnesota?
In Minnesota, workers’ compensation provides the following benefits:
- Medical care. Workers’ compensation pays medical costs if an employee gets injured or ill because of work related reasons
- Ongoing care. If a workplace injury or illness requires an employee to get ongoing care, such as physical therapy, workers’ compensation will pay for the treatment
- Repetitive injury. If a worker is injured because of ongoing repetitive job related strain — carpal tunnel syndrome is an example — workers’ comp pays for therapy
- Disability benefits. If an injury is so severe an employee never returns to work, or doesn’t for a long time, workers’ comp will pay related medical costs
Wage loss benefits
- Partial wage reimbursement. A work-related injury or illness often forces employees to take time off. Workers’ comp helps replace the lost wages of injured or sick employees while they’re recovering.
- Long-term wage replacement. If an injury is so bad, an employee can’t return to work, workers’ comp will pay a portion of lost wages over the long term
- Vocational rehabilitation. Workers comp pays to help people who become disabled because of a job related injury train for and find new work.
Death and dependency benefits
- Death benefits. Immediate family members receive payouts if an employee dies because of job related reasons
- Funeral expenses. If an employee passes away because of a work-related incident, workers’ comp pays funeral costs up to $15,000.
What doesn’t workers compensation insurance cover?
Workers’ compensation insurance does not cover things like:
- Unreasonable medical or therapy costs
- Injuries to independent contractors, clients or customers
- Employees who are intoxicated or high when they’re injured
- Wages for temporary employees while recovering from work-related injuries
- OSHA fines
- Injuries that occur after the employee has left work
- Vandalism or intentional injuries.
How is workers compensation insurance different than general liability insurance?
Workers comp only covers people who work for you. If a client, customer or random person is injured at your workplace or job site, general liability insurance will cover it. General liability covers bodily injury and damage caused by you or an employee to someone else’s property.
How much does workers compensation insurance cost in Minnesota?
In Minnesota, the average cost of workers’ comp coverage is $0.99 per $100 payroll. The actual cost of workers comp insurance of each company is based on a number of factors, including your:
- Number of employees and size of payroll
- Industry and type of work
- Workplace risks
- Company claims history
- Business age or years in operation.
Taken together, all these things will determine your final premium cost.
Remember that each company will offer you a different quote, be sure to shop around with a few companies or with a digital broker like CoverWallet so that you can compare several quotes to select the best and the cheapest one for your company.
How to find cheap workers compensation insurance in Minnesota
Businesses in Minnesota are able to choose their own workers’ comp insurance provider. You owe it to yourself to compare coverage and costs from several insurers. They have different ways of calculating premium costs and you will likely find a range of prices. You can select one that offers you the coverage you need at the best possible cost.
In addition, if you establish the safety programs at your workplace and have your employees follow all safety standards, you will be able to get discounts on workers comp insurance premiums each year.
Lastly, remember to ask for any additional discounts that each insurance company offers. Discounts are usually offered through any association or groups that your company is a member of. And whenever possible, choose to bundle your workers comp insurance policies with other related business insurance policies to earn additional discounts.