Thimble is Minnesota’s best workers' compensation insurance provider, scoring 95 out of 100. The company offers competitive rates for the level of service provided, and it has an extensive coverage selection. Nationwide and The Hartford are strong runners-up that you should also consider.
Cheapest Workers' Comp Insurance in Minnesota
Updated: June 5, 2025
Advertising & Editorial Disclosure
Key Takeaways
Thimble, Nationwide, The Hartford and biBerk are the best workers' comp insurance providers in Minnesota.
Workers' compensation coverage costs an average of $744 per year or $62 per month for most small businesses in Minnesota.
Workers' comp insurance is required in Minnesota for all companies with employees to cover expenses when employees sustain injuries or illnesses during business activities.
Best Cheap Workers’ Comp Insurance Companies in Minnesota
| Thimble | 95 | $226 |
| Nationwide | 91 | $247 |
| The Hartford | 91 | $251 |
| biBERK | 86 | $271 |
*Rates and scores are for software development businesses with small (five employees), medium (20 employees) and large (100 employees) operations, aggregated for an overall best recommendation.
Best Cheap Minnesota Workers' Comp Insurance by Business Size
For small businesses with five or fewer employees, Nationwide is the cheapest workers' compensation provider. For medium-size small businesses and larger small businesses, Thimble is the most cost-effective. Below you can review the companies' rates for small, medium and larger small businesses.
| Nationwide | Businesses with five or less employees | $62 |
| Thimble | Medium-size small businesses | $121 |
| Thimble | Larger small businesses | $528 |
Thimble: Best Overall
pros
Most affordable for medium and large small businesses
High customer service ratings
Flexible coverage choices
cons
Not the most affordable for micro small businesses (5 or fewer employees)
COMPANY HIGHLIGHTS
For small Minnesota businesses seeking workers' compensation insurance, Thimble provides good value and service, starting at $62 per month. It has a customer satisfaction score of 4.4 out of 5. Thimble offers on-demand coverage options, allowing businesses to purchase insurance for any duration from hourly to yearly terms.
How Much Is Workers' Comp Insurance in Minnesota?
In Minnesota, workers' comp rates range from $746 to $6,765 per year. However, this only represents rates for software development companies. Your rates will vary widely depending on the number of employees, the risk of your industry, the work your employees do individually and your claims history.
| Businesses with five or less employees | $66 | $746 |
| Medium-size small businesses | $142 | $1,645 |
| Larger small businesses | $576 | $6,765 |
Factors That Impact Workers’ Compensation Costs in Minnesota
The cost of workers' compensation insurance varies for each business, depending on several factors that influence coverage costs, including business type, location, number of employees and claims history.
Payroll costs
Businesses typically pay workers' compensation rates based on each $100 of payroll. A business with higher payroll costs pays a higher premium than one with lower payroll costs.
Number of employees
Companies with a large number of employees face a higher risk of employee injury, which can increase insurance premiums.
Employee class code
A class code identifies the type of work employees do. This code sets the rate charged for every $100 of payroll. High-risk industries like construction, mining and manufacturing typically have higher rates than lower-risk fields such as consulting, accounting and software development.
Previous claims
A history of workers' compensation claims can increase your premium.
Minnesota Workers' Comp Insurance: Buyer's Guide
Navigating business insurance is often a complicated task. We've broken down how to get the best workers' comp coverage, who needs it and what this type of policy covers to guide you.
How to Get the Best Workers' Comp Insurance in Minnesota
Below are the best steps to get the best workers' comp policy possible for your organization.
- 1
Learn about required coverages and options
Research your state's regulations first, as requirements and options vary widely. The coverage you need depends on your industry, organization size and claims history. Talk to a business insurance agent about what's right for your company before buying to avoid getting too much or too little workers' comp insurance.
- 2
Research costs and providers
Research average costs and providers for your specific business to determine which companies to consider. Also, consider state-provided options and whether self-insurance is possible in your state.
- 3
Consult similar businesses
Talk to other businesses in your community, especially those similar to yours. Ask about their experiences, needs and coverage choices to help make your decision.
- 4
Compare multiple providers through different means
Get multiple quotes and compare providers on equal terms to find the best deal. Prices vary depending on how you get quotes: by using online comparison sites or by speaking with an agent. Use different methods and contact various companies to gain the most balanced view of what's best for your business.
Do You Need Workers’ Compensation Insurance in Minnesota?
All businesses in Minnesota are required to carry workers’ compensation insurance. Sole proprietors, partners and corporate officers who fully own a corporation can choose to be excluded from this insurance.
WORKERS’ COMP PENALTIES IN MINNESOTA
Minnesota law requires employers to have workers' compensation insurance for their employees. If they don't, they could face serious penalties:
- Civil Penalties:
- Fine of up to $1,000 per employee for each week the employee was not insured
- 65% penalty on top of workers' compensation benefits if required to pay benefits back to the state for uninsured workplace injuries
- Criminal Penalties:
- Gross misdemeanor charges for willfully and intentionally failing to comply with the Workers' Compensation Act
- Fine of up to $3,000 for gross misdemeanor conviction
- Business Operations:
- Court order to provide necessary insurance coverage and refrain from employing any person until proper coverage is secured
- Mandatory hiring freeze until insurance is obtained
- Administrative Process:
- Companies have 10 days to comply with or contest a department order concerning insurance coverage
- If no objection is received, the order becomes final and cannot be appealed
- Contested orders are referred to a workers' compensation judge for determination
- Financial Liability:
- Required to pay employee's workers' compensation benefits back to the state if workplace injury occurs during uninsured period
- Full responsibility for workplace injury costs and medical expenses
What Does Workers’ Compensation Insurance Cover in Minnesota?
Workers' compensation insurance provides vital benefits to employees experiencing work-related injuries or illnesses. This coverage usually encompasses medical care, disability benefits and lost wages for affected workers, paying out 66% of weekly wages according to Minnesota law. This not only safeguards employees but also defends the business against potential legal claims associated with workplace injuries or illnesses.
Best Workers' Compensation Insurance Minnesota: Bottom Line
In total, the top three best and cheapest workers' comp insurance providers in Minnesota are Thimble, Nationwide and The Hartford. While these companies are our recommendations, compare rates yourself and consult similar businesses in your industry to get the best deal.
Workers' Comp Insurance in Minnesota: FAQ
Below are answers to common questions about Minnesota workers comp insurance from our MoneyGeek experts:
Which company has the best workers’ compensation insurance in Minnesota?
In Minnesota, Thimble offers the best workers’ compensation insurance, with competitive pricing (around $226 per month) and a low complaint index. However, selecting the best insurance for your needs will depend on various aspects, including your industry, the size of your workforce and state requirements.
Which company has the cheapest workers’ compensation insurance in Minnesota?
Nationwide is the most cost-effective workers comp insurance provider in Minnesota for businesses with five or fewer employees. For medium-sized small businesses and larger small businesses, Thimble offers the cheapest option.
Does Minnesota require businesses to have workers’ compensation insurance?
In Minnesota, all business entities must carry workers' compensation insurance. Sole proprietors, partners and fully-owning corporate officers may choose to waive coverage.
How much does workers’ compensation insurance cost in Minnesota?
In Minnesota, small businesses with around 20 employees often see a monthly workers' compensation premium of about $142.
How We Rated Workers' Comp Insurance Companies in Minnesota
MoneyGeek calculated workers' compensation insurance rates using a software development business with five, 20 and 100 employees to represent various organization sizes.
Our scoring methodology included:
- Affordability (60%): Overall cost compared to other providers and different business profiles
- Customer experience (30%): Ratings from actual customers, J.D. Power studies, AM Best financial stability ratings and our team's experience with quote processes
- Coverage (10%): Additional options beyond standard offerings and breadth of industries served
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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- SFM Mutual Insurance Company. "SFM Mutual Insurance." Accessed June 4, 2025.
- Thimble. "Customer Reviews From 40K Small Businesses." Accessed June 4, 2025.