Best Workers' Comp Insurance in Minnesota (2026)

The Hartford is the best workers' comp insurance in Minnesota, averaging $91 per employee per month and ranking first for both overall score and affordability among the 10 providers MoneyGeek reviewed. ERGO NEXT ties it on price at an average rate of $91 and ranks second overall, with the top customer experience score in the group. Both pull well ahead of the rest of the field. The next cheapest option, Thimble, averages $97 per month, while the most expensive, Chubb, averages $148.

The Hartford is the cheapest workers' compensation provider in more Minnesota industries than any other provider in our analysis, leading in 13 of 25 categories. Its strongest price advantage is in low-hazard work, including financial services ($9 a month), consulting ($15 a month) and marketing ($13 a month). 

ERGO NEXT leads where physical risk is highest, including Construction ($217 a month) and Agriculture ($152 a month). Two providers appear in just one category each: Progressive Commercial for Transportation and Logistics, and Coverdash for Fitness Services, both worth comparing if your business falls in those categories.

The average cost of workers' comp insurance in Minnesota is $112 per employee monthly, but rates vary widely by industry. The spread across Minnesota industries runs from $15 monthly for financial services to $339 for transportation and logistics. That's a 23x difference that reflects how dramatically physical risk affects workers' comp rates.

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

Minnesota law requires all employers to purchase workers' compensation insurance or become self-insured, regardless of business size. You need the 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. 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.

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.

The Hartford, ERGO NEXT and Coverdash lead Minnesota's workers' comp rankings. Businesses should research each company's service quality, maximize discounts and select coverage that fits their budget.