Best Small Business Insurance in Minnesota

NEXT leads Minnesota business insurance with top-ranked customer service, strong coverage options and competitive rates. Despite ranking 6th for financial stability, its excellent service and affordable premiums make it ideal for small businesses. The Hartford and Simply Business also provide solid coverage options for Minnesota entrepreneurs.

Note: This data represents a small business with 2 employees, $150,000 in payroll and $300,000 in annual revenue. All scores were calculated for four of the most common coverage types in the industry across 79 industries in the United States.

Business insurance costs in Minnesota range from $69 monthly for workers' compensation to $138 for business owner's policies. Your industry and risk factors determine your premium. Compare average rates for the four most common coverage types below:

• General Liability Cost: $97 monthly or $1,165 annually
• Workers' Comp Cost: $69 per month or $830 per year
• Professional Liability (E&O) Cost: $73 per month or $875 annually
• Business Owners Policy (BOP) Cost: $138 monthly or $1,655 annually

Note: We analyzed rates for your two-employee business across 79 industries, focusing on general liability, professional liability, workers' compensation and business owner's policies. Our Minnesota research covers the companies we surveyed and won't include every rate available to your specific business.

Minnesota business insurance costs range from $6 to $1,253 monthly depending on your industry and coverage type. Compare rates for your specific business below.

Note: We analyzed rates for your two-employee business across 79 industries, focusing on general liability, professional liability, workers' compensation and business owner's policies. Our Minnesota research covers the companies we surveyed and won't include every rate available to your specific business.

Below we've summarized business insurance cost factors that affect your premium, specific to Minnesota:

• Severe Hail and Wind Storm Losses: Minnesota businesses face elevated property insurance premiums following $6.3 billion in storm damage during 2022 and a single 2023 hailstorm causing $1 billion in Twin Cities losses. Minnesota saw the Midwest's largest rate increase at 19.8% in 2024. The Department of Commerce now requires many insurers to impose storm deductibles of 1% or more of property value.
• Universal Workers' Compensation Mandate: Minnesota requires workers' compensation insurance for all employers regardless of employee count, even one-employee businesses need coverage. The Department of Commerce reviews approximately 600 rate filings annually, and all insurers must join the Workers' Compensation Reinsurance Association, adding membership costs that insurers pass to businesses through higher premiums statewide.
• Modified Comparative Negligence Liability: Minnesota's 51% bar rule allows plaintiffs to recover damages in 50/50 fault scenarios, creating broader liability exposure than contributory negligence states. Plaintiffs recover compensation even when equally responsible for accidents. This increases insurers' total payouts and claim success rates, driving general liability and professional liability premiums higher than states where any plaintiff fault bars recovery.
• Twin Cities Metropolitan Crime Concentration: The seven-county Twin Cities metro area holds 55% of Minnesota's population but 74% of violent crime, with Hennepin County's violent crime rate at 538 per 100,000 and Ramsey County at 455 per 100,000, both far above outstate Minnesota's 152 per 100,000 rate. This urban crime concentration drives higher general liability, commercial property and workers' compensation premiums for Twin Cities businesses compared to rural operations.
• Healthcare and Medical Device Industry Concentration: Healthcare and Social Assistance added 31,270 jobs in 2024 (Minnesota's largest employment growth at 5.6%), while medical equipment manufacturing is projected to grow 10.2% through 2032. This concentration elevates professional and product liability risks for medical device manufacturers, healthcare providers and related businesses, driving specialized coverage costs higher than standard business insurance.

Minnesota businesses get competitive rates by comparing quotes from NEXT, The Hartford and Simply Business. Our quote tool matches you with Minnesota-licensed insurers based on your industry and coverage needs, often finding savings your current provider can't offer.

Minnesota requires fewer mandatory business insurance coverages than most states. Minnesota law mandates workers' compensation for all employers with employees and commercial auto insurance for business vehicles. Licensed contractors and salon operators need additional coverage to maintain their professional licenses.

Business insurance in Minnesota has moderate regulation, giving you flexibility to choose coverage that fits your specific needs. We've analyzed what works best for the major industries driving Minnesota's economy.

Minnesota businesses face unique insurance challenges: universal workers' comp mandates, severe weather and property deductibles. Getting business insurance that balances these costs with adequate protection requires a strategic approach.

NEXT, The Hartford and Simply Business lead Minnesota business insurance with strong service and competitive rates. Your best choice depends on whether you prioritize storm damage claims handling, need MJUA high-risk coverage or want bundled policies that offset Minnesota's rising property insurance costs.

Small business owners in Minnesota often have questions about finding the right business insurance coverage. We answer the most common questions below:

Small business owners in Minnesota need reliable coverage that protects their operations without breaking their budgets. We designed our methodology to help Minnesota entrepreneurs navigate challenges like hurricane risks and the state's optional workers' compensation laws.

We studied thousands of quotes from 79 industries across four coverage types for a two-employee firm with $300,000 annual revenue and $150,000 payroll. All policies included $1 million per occurrence and $2 million total per year, with BOPs adding $5,000 business property coverage.

• Affordability (50% of score): We compared company rates across all coverage types to identify the most cost-effective options for small businesses that need comprehensive financial protection without overpaying.
• Customer experience (30% of score): We analyzed J.D. Power satisfaction ratings, NAIC complaint data, online review sites and independent agency feedback to assess real-world service quality when you need claims handled quickly.
• Coverage options (15% of score): We evaluated the breadth of coverage types, policy limits and add-on options available to accommodate growing businesses and Minnesota's diverse industry needs.
• Financial strength (5% of score): We reviewed AM Best ratings, Moody's assessments and company financial reports to ensure insurers can reliably pay claims, especially important given Minnesota's frequent weather disasters.

This approach helps Minnesota small business owners compare insurers on what matters most: affordable premiums, reliable service, adequate coverage and financial stability.