Best Workers' Comp Insurance in Minnesota

Your workers' comp rates in Minnesota depend on your industry and team size. Find answers to common coverage questions below.

ERGO 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.

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Explore our top choices for workers' comp coverage in the Minnesota:

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ERGO 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.

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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.

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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).

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These cost factors affect workers' compensation insurance rates in Minnesota:

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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.

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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.

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Find out how to get workers' comp insurance with the right provider at the best price.

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ERGO 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.

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