Your workers' comp rates in Minnesota depend on your industry and team size. Find answers to common coverage questions below.
Best Workers' Comp Insurance in Minnesota
With rates starting at $5 monthly, NEXT, The Hartford and Simply Business offer the cheapest and best workers' comp insurance in Minnesota.
Compare top Minnesota workers’ comp insurance providers and find your ideal coverage.
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Updated: November 23, 2025
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Best Minnesota Workers' Comp Insurance: Fast Answers
What are the best and cheapest workers' comp insurance providers in Minnesota?
NEXT offers the top cheap workers' compensation insurance in Minnesota. The following are the state's cheapest and best workers' comp insurance providers and their average monthly rates:
- NEXT: $65
- The Hartford: $66
- Simply Business: $67
- Coverdash: $68
- biBerk: $70
Is workers' comp insurance required in Minnesota?
Minnesota mandates workers' comp insurance for most employers with one or more employees. Key exemptions include sole proprietors without employees, independent contractors and certain agricultural workers. Non-compliant employers face penalties up to $1,000 per employee plus daily fines, potential criminal charges and personal liability for workplace injuries.
How much does workers' comp insurance cost in Minnesota?
Workers' compensation insurance costs in Minnesota run $69 monthly for a two-person business, which breaks down to about $35 per employee. Your actual costs depend on your industry and payroll. Speech therapists pay the least at roughly $3 per employee monthly, while roofers pay the highest costs at around $396 per employee each month.
How do you get workers' comp insurance in Minnesota?
You can get workers' comp coverage in Minnesota by:
- Purchasing coverage from private insurance companies licensed in the state
- Buying through assigned risk pools if standard market options aren't available
- Qualifying for self-insurance status by meeting Minnesota's strict financial requirements
Many business owners compare quotes online or through brokers to get the best rate and compliance support.
What does Minnesota workers' comp insurance cover?
Workers' compensation in Minnesota covers:
- Complete medical expenses for work-related injuries and occupational illnesses
- Wage replacement benefits during recovery periods or permanent disability
- Vocational rehabilitation services to help injured workers return to employment
- Survivor benefits for families when workplace fatalities occur
Best Workers' Comp Insurance Companies in Minnesota
NEXT leads our research for workers' comp insurance in the state, delivering outstanding support when you need help most and comprehensive protection for diverse business risks. The Hartford and Simply Business rank as strong second and third choices, both providing reliable coverage for small business owners.
| NEXT Insurance | 4.60 | $65 | 1 | 2 |
| The Hartford | 4.59 | $66 | 2 | 3 |
| Simply Business | 4.52 | $67 | 5 | 1 |
| Coverdash | 4.45 | $68 | 6 | 2 |
| biBERK | 4.42 | $70 | 2 | 5 |
| Nationwide | 4.42 | $76 | 2 | 4 |
| Progressive Commercial | 4.40 | $67 | 7 | 5 |
| Hiscox | 4.37 | $67 | 4 | 6 |
| Thimble | 4.35 | $67 | 8 | 5 |
| Chubb | 4.25 | $79 | 3 | 4 |
How Did We Determine These Rates and Rankings?
These rates are estimates based on MoneyGeek's analysis of small businesses with two employees across 79 major industries. Actual rates vary based on your business location, industry risk factors, claims history, coverage limits and individual insurer underwriting criteria. Contact insurers directly for personalized quotes.
Get Matched to Top Workers' Comp Insurers in Minnesota
Select your industry and state to get a customized Minnesota workers' comp quote from your top provider match.
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LEARN MORE ABOUT THE BEST BUSINESS INSURANCE IN MINNESOTA
Explore the best business insurance providers in Minnesota through our guides:
Best Minnesota Workers’ Comp Insurance Company Reviews
Explore our top choices for workers' comp coverage in the Minnesota:
NEXT
Best Workers' Comp Insurance in Minnesota
MoneyGeek Rating
4.6/ 5
4.4/5Affordability
4.7/5Customer Experience
4.8/5Coverage Points
Average Monthly Workers' Comp Premium
$65We analyzed thousands of workers' compensation quotes from insurers operating in Minnesota across 79 industriesWorkers' Comp Digital Experience Score
4.8/5 (1st)Rating from customer satisfaction surveyWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.8/5 (1st)Percentage of customers who would recommend NEXT
The Hartford
Best Minnesota Workers' Comp Insurance: Runner Up
MoneyGeek Rating
4.6/ 5
4.5/5Affordability
4.6/5Customer Experience
4.7/5Coverage Points
Average Monthly Workers' Comp Premium
$66Based on average costs across business typesWorkers' Comp Claims Process Score
4.5/5 (1st)Rating from customer satisfaction surveyWorkers' Comp Customer Likelihood to Be Recommended to Others Score
4.5/5 (2nd)Percentage of customers who would recommend The Hartford
Cheapest Workers' Comp Insurance Companies in Minnesota
NEXT delivers the most affordable workers' comp coverage in Minnesota at just $65 monthly or $776 per year. This rate puts $4 back in your pocket each month compared to the state average of $69 monthly.
The Hartford comes in second at $66 monthly, while Thimble rounds out the top three cheapest options at $67 per month. Both providers offer solid alternatives that still beat the average annual cost of $830.
The table below shows costs from all companies we analyzed.
| NEXT Insurance | $65 | $776 |
| The Hartford | $66 | $786 |
| Thimble | $67 | $800 |
| Hiscox | $67 | $802 |
| Progressive Commercial | $67 | $805 |
| Simply Business | $67 | $807 |
| Coverdash | $68 | $816 |
| biBERK | $70 | $845 |
| Nationwide | $76 | $911 |
| Chubb | $79 | $953 |
How Did We Determine These Rates?
These rates represent small businesses with two employees across 79 major industries and focus solely on workers' comp policies. Your actual premium depends on your business location, industry, employee count, claims history, coverage limits and other factors insurers consider.
Cheapest Workers' Comp in Minnesota by Industry
Simply Business offers the most affordable workers' comp for automotive businesses at $102 monthly or $1,220 annually. Simply Business leads pricing in 8 industries, excelling in automotive, auto repair and construction sectors. The Hartford ranks second for affordability, delivering the cheapest rates across 21 industries including wedding planning, wholesale and retail businesses.
| Accountants | NEXT Insurance | $18 | $218 |
| Auto Repair | Simply Business | $135 | $1,615 |
| Ad Agency | Hiscox | $14 | $170 |
| Automotive | Simply Business | $102 | $1,220 |
| Bakery | NEXT Insurance | $46 | $554 |
| Beauty Salon | The Hartford | $12 | $147 |
| Barber | The Hartford | $12 | $145 |
| Candle | The Hartford | $35 | $417 |
| Bounce House | Simply Business | $35 | $424 |
| Catering | NEXT Insurance | $65 | $774 |
| Cannabis | Nationwide | $87 | $1,040 |
| Computer Repair | NEXT Insurance | $21 | $253 |
| Cleaning | The Hartford | $44 | $524 |
| Coffee Shop | Hiscox | $42 | $499 |
| Computer Programming | NEXT Insurance | $25 | $294 |
| Construction | NEXT Insurance | $156 | $1,872 |
| Contractor | The Hartford | $143 | $1,711 |
| Consulting | Simply Business | $26 | $315 |
| Daycare | NEXT Insurance | $12 | $141 |
| Courier | The Hartford | $197 | $2,358 |
| DJ | Progressive Commercial | $12 | $148 |
| Dental | Simply Business | $10 | $117 |
| Ecommerce | NEXT Insurance | $19 | $224 |
| Dog Grooming | Thimble | $56 | $674 |
| Drone | NEXT Insurance | $23 | $273 |
| Electrical | The Hartford | $49 | $585 |
| Excavation | The Hartford | $92 | $1,103 |
| Engineering | NEXT Insurance | $33 | $394 |
| Food | NEXT Insurance | $36 | $432 |
| Florist | NEXT Insurance | $54 | $644 |
| Food Truck | Thimble | $40 | $474 |
| Gardening | NEXT Insurance | $41 | $489 |
| Funeral Home | NEXT Insurance | $23 | $276 |
| Handyman | Hiscox | $84 | $1,007 |
| Hospitality | The Hartford | $61 | $729 |
| Home-based | NEXT Insurance | $9 | $103 |
| Janitorial | NEXT Insurance | $41 | $498 |
| HVAC | The Hartford | $56 | $672 |
| Junk Removal | Progressive Commercial | $121 | $1,452 |
| Jewelry | NEXT Insurance | $26 | $317 |
| Lawn/Landscaping | NEXT Insurance | $32 | $389 |
| Manufacturing | NEXT Insurance | $50 | $604 |
| Lawyers | The Hartford | $46 | $551 |
| Massage | The Hartford | $12 | $149 |
| Marine | Simply Business | $130 | $1,565 |
| Mortgage Broker | Progressive Commercial | $12 | $147 |
| Nonprofit | Thimble | $27 | $323 |
| Moving | Simply Business | $230 | $2,765 |
| Party Rental | The Hartford | $32 | $379 |
| Painting | Thimble | $122 | $1,465 |
| Pest Control | The Hartford | $62 | $747 |
| Personal Training | NEXT Insurance | $21 | $256 |
| Pharmacy | The Hartford | $6 | $67 |
| Pet | NEXT Insurance | $27 | $319 |
| Photography | NEXT Insurance | $15 | $180 |
| Plumbing | NEXT Insurance | $55 | $662 |
| Physical Therapy | NEXT Insurance | $6 | $73 |
| Physical Therapy | The Hartford | $6 | $73 |
| Real Estate | Simply Business | $26 | $315 |
| Pressure Washing | Nationwide | $85 | $1,024 |
| Restaurant | NEXT Insurance | $54 | $649 |
| Roofing | Nationwide | $874 | $10,487 |
| Retail | NEXT Insurance | $29 | $352 |
| Snack Bars | Thimble | $38 | $452 |
| Security | Thimble | $46 | $547 |
| Software | Thimble | $23 | $270 |
| Startup | NEXT Insurance | $11 | $135 |
| Spa/Wellness | The Hartford | $15 | $182 |
| Speech Therapist | NEXT Insurance | $5 | $62 |
| Tech/IT | Thimble | $24 | $284 |
| Travel | NEXT Insurance | $6 | $73 |
| Transportation | NEXT Insurance | $197 | $2,363 |
| Travel | The Hartford | $6 | $73 |
| Tree Service | Thimble | $195 | $2,340 |
| Tutoring | NEXT Insurance | $9 | $104 |
| Trucking | The Hartford | $230 | $2,757 |
| Wedding Planning | The Hartford | $25 | $300 |
| Veterinary | NEXT Insurance | $17 | $202 |
| Welding | NEXT Insurance | $100 | $1,200 |
| Wholesale | The Hartford | $35 | $426 |
| Window Cleaning | NEXT Insurance | $183 | $2,198 |
How Much Is Workers' Comp Insurance in Minnesota?
In Minnesota, businesses pay an average of $69 monthly ($830 annually) for workers' comp insurance cost, running about $5 below the national average of $74. Industry costs vary, with speech therapists paying as little as $67 annually ($34 per employee) while roofers pay premiums up to $9,497 yearly ($4,749 per employee).
| Accountants | $19 | $231 |
| Ad Agency | $15 | $179 |
| Auto Repair | $143 | $1,715 |
| Automotive | $109 | $1,314 |
| Bakery | $50 | $605 |
| Barber | $13 | $159 |
| Beauty Salon | $14 | $163 |
| Bounce House | $38 | $453 |
| Candle | $38 | $455 |
| Cannabis | $79 | $945 |
| Catering | $69 | $832 |
| Cleaning | $46 | $552 |
| Coffee Shop | $44 | $531 |
| Computer Programming | $27 | $318 |
| Computer Repair | $23 | $272 |
| Construction | $170 | $2,039 |
| Consulting | $28 | $342 |
| Contractor | $156 | $1,869 |
| Courier | $212 | $2,548 |
| DJ | $13 | $159 |
| Daycare | $13 | $152 |
| Dental | $11 | $126 |
| Dog Grooming | $61 | $728 |
| Drone | $25 | $300 |
| Ecommerce | $20 | $246 |
| Electrical | $54 | $643 |
| Engineering | $36 | $432 |
| Excavation | $100 | $1,202 |
| Florist | $58 | $693 |
| Food | $39 | $473 |
| Food Truck | $43 | $513 |
| Funeral Home | $25 | $305 |
| Gardening | $44 | $529 |
| HVAC | $59 | $708 |
| Handyman | $88 | $1,055 |
| Home-based | $9 | $112 |
| Hospitality | $65 | $784 |
| Janitorial | $46 | $548 |
| Jewelry | $28 | $339 |
| Junk Removal | $132 | $1,581 |
| Lawn/Landscaping | $35 | $421 |
| Lawyers | $49 | $589 |
| Manufacturing | $55 | $659 |
| Marine | $140 | $1,681 |
| Massage | $14 | $164 |
| Mortgage Broker | $13 | $157 |
| Moving | $246 | $2,952 |
| Nonprofit | $30 | $357 |
| Painting | $131 | $1,572 |
| Party Rental | $35 | $415 |
| Personal Training | $23 | $282 |
| Pest Control | $66 | $797 |
| Pet | $29 | $346 |
| Pharmacy | $6 | $72 |
| Photography | $16 | $192 |
| Physical Therapy | $6 | $77 |
| Plumbing | $60 | $720 |
| Pressure Washing | $79 | $946 |
| Real Estate | $28 | $339 |
| Restaurant | $59 | $711 |
| Retail | $33 | $394 |
| Roofing | $791 | $9,497 |
| Security | $49 | $582 |
| Snack Bars | $41 | $488 |
| Software | $25 | $297 |
| Spa/Wellness | $16 | $196 |
| Speech Therapist | $6 | $67 |
| Startup | $12 | $147 |
| Tech/IT | $25 | $306 |
| Transportation | $215 | $2,583 |
| Travel | $7 | $79 |
| Tree Service | $208 | $2,492 |
| Trucking | $252 | $3,029 |
| Tutoring | $9 | $114 |
| Veterinary | $18 | $220 |
| Wedding Planning | $27 | $321 |
| Welding | $111 | $1,334 |
| Wholesale | $38 | $454 |
| Window Cleaning | $198 | $2,374 |
Minnesota Workers' Comp Insurance Cost Factors
These cost factors affect workers' compensation insurance rates in Minnesota:
Special Compensation Fund Assessment
Insurers pay a 4.17% Special Compensation Fund assessment on pure premium to fund Minnesota's workers' comp programs, including benefits for uninsured employers' workers, second-injury fund reimbursement and Department of Labor and Industry operations. This state-specific surcharge is factored into your premium calculation, making Minnesota coverage more expensive than in states without similar assessments. You're essentially paying for other employers' failures to carry insurance plus state administrative costs.
Minnesota Workers' Compensation Assigned Risk Plan (MWCARP)
Businesses that can't get coverage in the private market pay higher rates through Minnesota's assigned risk pool, with average annual premiums around $1,470 following a 6.8% rate decrease in 2023. The pool covers high-risk businesses with poor claims history, dangerous operations or previous coverage lapses. If you end up in assigned risk due to claims or violations, you'll pay substantially more than the voluntary market and its existence affects all pricing since insurers can decline marginal risks.
Three-Day Waiting Period with 10-Day Retroactive Rule
Minnesota's waiting period creates cost uncertainty: wage-loss benefits don't start until after three calendar days of disability, but if disability continues for 10 days or longer, insurers must retroactively pay from the first day at two-thirds of average weekly wage. This "cliff effect" means insurers face either minimal costs or substantial payouts with little middle ground, forcing conservative pricing to account for potential retroactive payments on claims that cross the 10-day threshold.
Independent Rating System
Minnesota operates an independent workers' comp system without National Council on Compensation Insurance oversight, allowing insurers to apply policy credits and debits up to 25% to adjust filed rates. This creates rate variation between carriers for identical coverage, potentially 40% to 60% differences, since insurers use proprietary methods to evaluate risk. While this means potential savings through diligent shopping, you could overpay significantly without comparing multiple carriers in Minnesota's non-standardized system.
Annual Statewide Average Weekly Wage (SAWW) Adjustments
Minnesota recalculates benefit levels annually based on statewide wage data, with the October 1, 2025 SAWW increasing 3.72% to $1,423 and maximum weekly benefits rising to $1,536.84. The average SAWW increase since 2016 is 3.72% annually, meaning benefit costs rise faster than general inflation. Insurers must price premiums today to cover claims filed months or years later when benefit levels will be higher, forcing them to build future increases into current calculations.
Minnesota Contractors Premium Adjustment Program (MCPAP)
This construction-specific program rewards contractors paying higher wages with premium credits of 5% to 25% based on average hourly wages, but lost premium is offset through rate adjustments of 1% to 1.284% on construction classification codes. Contractors paying below-average wages subsidize credits given to higher-wage competitors through inflated base rates. Missing the annual application means paying inflated rates without receiving credits, creating a two-tier pricing system unique to Minnesota's construction industry.
How Much Workers' Comp Insurance Do I Need in Minnesota?
Minnesota law requires all employers to purchase workers' compensation insurance or become self-insured, regardless of business size. You need required workers' compensation coverage even with just one part-time employee.
Your policy must provide unlimited medical treatment for work-related injuries and wage loss benefits paying two-thirds of your employee's average weekly wage. For 2025, maximum weekly benefits reach approximately $1,313. Coverage amounts scale based on your payroll and industry classification code. Skipping coverage can cost you up to $1,000 per employee per week in fines. If an employee gets injured while you're uninsured, you'll reimburse the state's Special Compensation Fund plus a 65% penalty.
Minnesota Workers' Comp Insurance Exemptions
You're required to have coverage in Minnesota, but some business categories are exempt from workers' comp requirements:
- Sole proprietors who are self-employed can exclude themselves and immediate family members (spouse, parents, children) working in the business from coverage requirements.
- Business partners enjoy the same exemption for themselves and their spouse, parents and children employed by the partnership.
- Corporate officers and LLC managers who own at least 25% of a closely held business can opt out of coverage. Your business qualifies as "closely held" if it has 10 or fewer shareholders (or members for LLCs) with less than 22,880 payroll hours annually. This exemption extends to your spouse, parents and children working in the company.
- Extended family members of qualifying owners can also be excluded. This includes relatives within the third degree of kinship: uncles, nieces, siblings and grandchildren. You'll need to file a written election with the Minnesota Department of Labor and Industry.
- Family farm workers employed by qualifying family farms don't need coverage. This exemption extends to the farmer's spouse, parents and children working in the operation, along with executive officers of family farm corporations.
- Household employees earning less than $1,000 in a three-month period from a single household don't require coverage. This includes domestic workers, repairers, groundskeepers and maintenance workers in private homes.
- Casual employees performing occasional labor outside your normal business operations are exempt from coverage requirements.
- Independent contractors who work for multiple clients, set their own schedules, provide their own tools and control how they complete their work don't need workers' comp coverage. The key distinction is that you can't control when, where or how they do their job.
- Small nonprofit organizations paying less than $1,000 in total annual wages can skip coverage. Officers or members of veterans' organizations whose only employment relationship involves attending meetings or conventions are also exempt unless the organization chooses to provide coverage.
- Federal program volunteers like AmeriCorps or Senior Corps members fall outside state workers' compensation requirements since they're covered under federal programs.
FEDERAL WORKERS' COMP PROGRAMS OVERRIDE STATE REQUIREMENTS
Federal employees working in Minnesota get coverage through the Federal Employees' Compensation Act, not state workers' comp. This includes civilian government workers, federal jurors and Peace Corps volunteers. Railroad workers fall under the Federal Employers' Liability Act, while maritime workers on the Mississippi River or Lake Superior use the Longshore and Harbor Workers' Compensation Act. Independent contractors and unpaid volunteers don't need Minnesota workers' comp coverage.
How to Get the Best Workers' Comp Insurance in Minnesota
Find out how to get workers' comp insurance with the right provider at the best price.
- 1Determine if you need workers' comp coverage in Minnesota
Check if workers' comp exemptions apply to your business structure or employee types. A sole proprietor graphic designer doesn't need coverage, but hiring one employee changes that. Minnesota classifies workers differently than other states, so people you consider independent contractors might legally qualify as employees requiring coverage.
- 2Gather your business information
Collect your employee count, annual payroll and classification codes for accurate quotes. Minnesota uses the National Council on Compensation Insurance system with industry-specific codes that determine your rates.
Accurate numbers matter. Estimating your payroll or using the wrong classification code can trigger audit penalties or leave you with coverage gaps during a claim. Restaurants and construction businesses face extra scrutiny since Minnesota applies different rates for tipped employees and seasonal workers.
- 3Request workers' comp quotes from multiple carriers
Request quotes from at least three insurers to compare business insurance costs side by side. Add Minnesota's assigned risk pool to your list if you're struggling to find standard market coverage.
Minnesota doesn't run a state insurance fund, so you'll work with private carriers or enter the assigned risk pool for difficult-to-insure businesses. Rates vary widely based on your industry and loss history. Target insurers who specialize in your field rather than just household names.
- 4Research providers with industry experience
Review insurers who understand your specific risks beyond simply offering affordable business insurance rates. Warehousing operations should look for carriers experienced with material handling injuries and OSHA standards rather than general commercial providers.
- 5Evaluate your top provider options
Compare each insurer's performance to find the best insurance for your business:
- Review claim processing speed, service quality and complaint records filed with the Minnesota Department of Commerce.
- Confirm the insurer offers managed care networks that control medical costs and coordinate treatment for injured employees.
- Ask about their experience navigating Minnesota's workers' compensation court and their success rate with disputed claims.
- Look for safety training resources, return-to-work programs and workplace assessments designed for Minnesota employers.
- 6Review and purchase your workers' compensation policy
Read your policy terms closely, focusing on coverage limits, exclusions and renewal terms under Minnesota regulations. Choose payment structures that fit your budget, such as pay-as-you-go workers' comp for businesses with variable payrolls. Ask about premium discounts for safety programs or claim-free periods.
- 7Reassess before annual renewal
Review how your business has changed before renewal. Update your employee count, examine filed claims and check your experience modification rate.
Your business evolves. Maybe you hired more staff, expanded services or relocated. Share these updates with your insurer to avoid overpaying or carrying inadequate coverage. Minnesota rates adjust based on statewide trends, so your premium might rise even without claims.
Best Minnesota Workers' Compensation Insurance: Bottom Line
NEXT, The Hartford and Simply Business lead Minnesota's workers' comp rankings. Businesses should research each company's service quality, maximize discounts and select coverage that fits their budget.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Minnesota Department of Labor and Industry. "Fines and Penalties for Employers' Failure to Insure." Accessed December 11, 2025.
- Minnesota Department of Labor and Industry. "Independent Contractor or Employee." Accessed December 11, 2025.
- Minnesota Department of Labor and Industry. "Rate Information, Statewide Average Weekly Wage (SAWW)." Accessed December 11, 2025.
- Minnesota Department of Labor and Industry. "Results of Special Compensation Fund Assessment." Accessed December 11, 2025.
- Minnesota Department of Labor and Industry. "Waiting Period After Injury." Accessed December 11, 2025.
- Minnesota Department of Labor and Industry. "Wage-Loss and Monetary Benefits." Accessed December 11, 2025.
- Minnesota Department of Revenue. "Commerce Approves Decrease in Rates for Businesses Buying Workers' Compensation Insurance Through State Program." Accessed December 11, 2025.
- Minnesota Legislature. "176.181 Insurance." Accessed December 11, 2025.
- Minnesota Workers' Compensation Insurers Association. "Agent FAQs." Accessed December 11, 2025.
- Minnesota Workers' Compensation Insurers Association. "Minnesota Contractors Premium Adjustment Program." Accessed December 11, 2025.
- Workers Compensation Research Institute. "Workers Compensation Premium Credits for Construction Contractors." Accessed December 11, 2025.