NEXT tops our analysis of Minnesota business insurance providers because of its strong customer service and comprehensive coverage. The Hartford and Simply Business are also reliable options for small business owners across the state.
Business Insurance in Minnesota
NEXT tops our Minnesota business insurance rankings with a MoneyGeek score of 4.63 out of 5.
Find affordable coverage that protects your small business in Minnesota below.
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Updated: August 21, 2025
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Key Takeaways
Small business owners in Minnesota can get the best business insurance from NEXT, The Hartford and Simply Business.
The best business insurance in Minnesota depends on your industry risks, employee count and preferred coverage limits.
To find the best coverage, assess your risks, compare multiple quotes, research provider service quality and maximize available discounts.
Best Business Insurance Companies in Minnesota
| NEXT | 4.63 | 3 | 1 | 2 |
| The Hartford | 4.61 | 1 | 2 | 3 |
| Simply Business | 4.49 | 4 | 5 | 1 |
| Nationwide | 4.47 | 6 | 2 | 4 |
| Coverdash | 4.41 | 5 | 6 | 2 |
| biBERK | 4.39 | 7 | 2 | 5 |
| Progressive Commercial | 4.32 | 3 | 7 | 5 |
| Thimble | 4.30 | 2 | 8 | 5 |
| Hiscox | 4.27 | 6 | 4 | 6 |
| Chubb | 4.26 | 8 | 3 | 4 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best by Coverage Type
The Hartford leads Minnesota businesses with the best general liability coverage and business owner's policies (BOP). NEXT provides superior professional liability insurance and workers' compensation coverage.
| Business Owners Policy | The Hartford | 4.66 |
| General Liability | The Hartford | 4.60 |
| Professional Liability (E&O) | NEXT | 4.69 |
| Workers Compensation | NEXT | 4.60 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Best Minnesota Small Business Insurance Reviews
Our research identified the top three business insurance providers in Minnesota based on coverage options and value. Here's what makes each company stand out for comprehensive protection that fits your business needs.
NEXT
Best Customer Experience
MoneyGeek Rating
4.6/ of 5
4.5/5Affordability
4.7/5Customer Experience
4.8/5Coverage Options
Average Monthly Cost of General Liability Insurance
$102This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$69This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
3.9/5Our Survey: Likely to Be Recommended to Others
4.8/5
The Hartford
Best for Affordability
MoneyGeek Rating
4.6/ of 5
4.6/5Affordability
4.6/5Customer Experience
4.7/5Coverage Options
Average Monthly Cost of General Liability Insurance
$77This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$66This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
4.5/5The Hartford ranks #1 nationally for claims process satisfactionOur Survey: Likely to Be Recommended to Others
4.5/5The Hartford ranks #2 nationally for customer recommendations
Simply Business
Best for Coverage Availability
MoneyGeek Rating
4.5/ of 5
4.4/5Affordability
4.2/5Customer Experience
4.9/5Coverage Options
Average Monthly Cost of General Liability Insurance
$90This rate is for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies.Average Monthly Cost of Workers' Comp Insurance
$67This rate is for small businesses with two employees across 79 major industries or business types and focus solely on workers' comp policies.Our Survey: Claims Process
3.7/5Our Survey: Likely to Be Recommended to Others
4.2/5
Cheapest Business Insurance Companies in Minnesota
The Hartford leads Minnesota business insurance providers with rates of $78 monthly ($941 annually). Thimble and Simply Business follow as affordable alternatives at $88 and $91 per month, respectively. Compare complete pricing details for all providers in the table below.
| The Hartford | $78 | $941 |
| Thimble | $88 | $1,055 |
| Simply Business | $91 | $1,088 |
| Progressive Commercial | $93 | $1,121 |
| NEXT | $94 | $1,125 |
| Coverdash | $95 | $1,136 |
| Nationwide | $95 | $1,137 |
| biBERK | $98 | $1,172 |
| Hiscox | $101 | $1,213 |
| Chubb | $110 | $1,325 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest General Liability Insurance Companies in Minnesota
Minnesota business owners can find the cheapest general liability coverage through The Hartford at $77 per month. Simply Business offers the next lowest rate at $90 monthly. You can compare all providers' general liability insurance rates in the table below.
| The Hartford | $77 | $919 |
| Simply Business | $90 | $1,077 |
| Nationwide | $91 | $1,091 |
| Progressive Commercial | $94 | $1,125 |
| NEXT | $97 | $1,159 |
| Coverdash | $97 | $1,164 |
| Thimble | $101 | $1,208 |
| Hiscox | $107 | $1,285 |
| biBERK | $107 | $1,286 |
| Chubb | $111 | $1,337 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Professional Liability Insurance Companies in Minnesota
The Hartford offers the lowest-cost professional liability insurance (E&O) at $67 monthly ($798 annually). NEXT provides another budget-friendly option for Minnesota businesses.
| The Hartford | $67 | $798 |
| NEXT | $68 | $817 |
| Progressive Commercial | $71 | $847 |
| Simply Business | $71 | $855 |
| Thimble | $72 | $867 |
| Hiscox | $73 | $872 |
| Coverdash | $73 | $873 |
| biBERK | $74 | $892 |
| Nationwide | $77 | $925 |
| Chubb | $83 | $1,000 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability/errors and omissions policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest Workers’ Comp Insurance Companies in Minnesota
NEXT offers Minnesota's cheapest workers' comp coverage at $65 monthly ($776 annually). The Hartford and Thimble also provide competitive rates, making all three solid choices for affordable business coverage in the state.
| NEXT | $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 are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cheapest BOP Insurance Companies in Minnesota
The Hartford offers the cheapest BOP rates in Minnesota at $105 per month ($1,260 annually). Business owners can also find affordable BOP insurance through Thimble, Simply Business and Nationwide.
| The Hartford | $105 | $1,260 |
| Thimble | $112 | $1,347 |
| Simply Business | $134 | $1,613 |
| Nationwide | $135 | $1,622 |
| biBERK | $139 | $1,665 |
| Coverdash | $141 | $1,690 |
| Progressive Commercial | $142 | $1,709 |
| NEXT | $146 | $1,748 |
| Hiscox | $158 | $1,892 |
| Chubb | $167 | $2,010 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP policies. Survey results reflect limited sample data and may not represent all available rates in your area.
How Much Does Business Insurance Cost in Minnesota?
Business insurance in Minnesota ranges from $69 to $138 monthly, with workers' compensation being the most affordable and business owner's policies costing the most. Rates vary based on the coverage type your business needs.
| BOP | $138 |
| General Liability | $97 |
| Professional Liability (E&O) | $73 |
| Workers Comp | $69 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cost of Business Insurance by Industry and Coverage
Business insurance costs in Minnesota vary based on industry and coverage types. Our research shows speech therapists pay as little as $6 monthly for workers' compensation, while pressure washing businesses pay up to $1,253 for a business owner's policy.
Data filtered by:Results filtered by:
Select
Coverage Type:Business Owners Policy
Select
Industry:Accountants
| Accountants | Business Owners Policy | $30 |
How Did We Determine These Rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
What Factors Influence My Costs?
Several key factors influence your Minnesota business insurance premiums.
Industry Risk Level
Your business type directly impacts your insurance costs in Minnesota. Construction companies pay substantially more than consultants because job sites have higher accident rates. A Minnesota construction firm might pay $3,500 per year for coverage, while a consulting business pays around $500 per year.
Geographic Location and Weather Risks
Minnesota's severe weather affects your business insurance rates. With an average of 28 tornadoes yearly and frequent winter storms, insurers price coverage based on these risks. According to FEMA data, Minnesota has faced 35 major disasters since 2000, pushing insurance costs higher in storm-prone areas.
Business Size
Your employee count and revenue directly affect your insurance costs. A retail store with 20 employees and $2 million in revenue pays more than a solo consultant working from home. Workers' compensation rates are calculated per $100 of payroll, while liability coverage costs rise with higher customer traffic and sales volume.
Claims History
Previous claims raise your insurance costs for three to five years in Minnesota. Even a single property damage claim can increase your rates across multiple coverage types. Insurance companies offer their best rates to businesses that maintain claim-free records.
Coverage Types and Limits
Your coverage choices shape your premium costs. Higher liability limits increase rates, but bundling coverage through a business owner's policy often saves money. Minnesota businesses can reduce costs by choosing appropriate coverage limits based on each business's risks.
Years in Business
New Minnesota businesses face higher insurance rates until they build a track record. After operating claim-free for three years, many insurers reduce premiums. This reflects the lower risk profile of established businesses with proven safety practices.
Professional Certifications
Safety certifications and professional licenses can lower your insurance costs. Minnesota contractors with OSHA safety certifications often qualify for premium discounts. These credentials show insurers you follow industry best practices to prevent accidents.
Minnesota Business Insurance Buying Guide
Running a business takes significant focus, and getting business insurance can feel like one more task on your endless to-do list. Our straightforward guide breaks down everything you need to know about business insurance in Minnesota.
What Coverage Is Required?
We've researched all Minnesota business insurance requirements to save you time. Check the section below for a complete breakdown of what your business needs.
Workers' Comp
Minnesota requires workers' compensation insurance for most businesses, with specific rules for different types of workers.
You must carry workers' comp if you have one or more employees, including part-time and seasonal workers. Minnesota includes corporate officers as employees requiring coverage, though they can opt out if they own at least 25% of the corporation. Sole proprietors and business partners are exempt but can choose coverage. The state has strict rules for independent contractors, requiring coverage unless they meet specific qualification tests and carry their own insurance.
Commercial Auto Insurance
Small businesses that own vehicles or require employees to drive for work need commercial auto insurance. Minnesota requires all vehicles to carry at least $30,000 per person and $60,000 per accident for bodily injury, plus $10,000 for property damage. You'll also need personal injury protection coverage of at least $40,000, which covers medical expenses and lost wages regardless of fault.
Unemployment Insurance
Minnesota requires unemployment insurance for businesses that pay wages of $1,000 or more in any quarter. You must register with the Minnesota Department of Employment and Economic Development and pay quarterly contributions. The state has one of the lower thresholds for coverage, making it easier to trigger the requirement than in many other states.
Professional Liability Insurance
You'll need professional liability insurance if you hold a professional license in Minnesota for medical, legal, architectural or engineering work. Health care providers must carry malpractice coverage with minimum amounts that vary by specialty, while other professionals should check with licensing boards for specific requirements.
Temporary Disability Insurance
Minnesota requires short-term disability insurance through a state program funded by employee payroll deductions. This coverage provides partial wage replacement for workers who can't work due to non-work-related injuries, illnesses or pregnancy. The state administers the program and provides benefits for up to 12 weeks per year.
What Coverage Do We Recommend?
Minnesota keeps business insurance requirements minimal, leaving you responsible for protecting your company properly. Here's our analysis of the best coverage options for the state's leading industries:
Manufacturing | General liability, product liability, workers' compensation, commercial property, business interruption, medical device manufacturing coverage, winter weather protection, tornado coverage, supply chain interruption | Minnesota manufacturers in medical devices, machinery and food processing face product liability from life-critical applications and FDA regulatory violations. Severe winter weather and tornadoes can disrupt operations, while medical device manufacturing requires specialized contamination coverage. |
Food | General liability, product liability, commercial property, equipment breakdown, business interruption, contamination coverage, recall coverage, winter weather supply chain, agricultural processing coverage | Minnesota food processors handle corn, soybeans, dairy and meat products with contamination risks and massive recall exposure. Winter weather disrupts supply chains, while tornado damage can trigger widespread contamination and costly product recalls. |
Tech/IT | Professional liability (E&O), cyber liability, general liability, commercial property, intellectual property insurance, directors & officers (D&O), winter weather business interruption, Fortune 500 client coverage | Minnesota tech companies serving Fortune 500 clients face massive cyber attack exposure, intellectual property disputes and high-stakes contract failures. Winter weather can disrupt data centers, while serving major corporations creates elevated professional liability exposure. |
Welding | General liability, workers' compensation, commercial auto, equipment coverage, completed operations coverage, fire damage liability, medical device fabrication, winter operations coverage | Minnesota welding shops support medical device manufacturing, agricultural equipment and Fortune 500 industrial operations with specialized liability. Medical device welding requires clean room standards and FDA compliance, while winter conditions affect welding quality and safety. |
How to Get the Best Cheap Business Insurance in Minnesota
Small business owners in Minnesota often struggle to find affordable insurance coverage that meets their needs. Here's how to secure essential protection while keeping costs manageable:
- 1
Assess Your Actual Risks First
Look at the risks your Minnesota business faces rather than accepting blanket recommendations. A Minneapolis restaurant needs strong property coverage for winter storm damage, while a St. Paul tech startup might focus on cyber liability protection.
- 2
Get Quotes From Multiple Insurers
Insurance costs vary significantly between providers in Minnesota for identical coverage. Contact at least three insurance companies directly and through independent agents to find the best rates for your business type.
- 3
Choose Providers Based on Service Quality
Research insurer ratings and ask other local business owners about their claims experiences. A Duluth manufacturing company needs an insurer with solid equipment breakdown coverage, while a Rochester medical office requires strong professional liability support.
- 4
Maximize Available Discounts
Combine multiple policies with one insurer and maintain good safety records to reduce costs. A Minnesota retail store could save by bundling property and liability coverage while documenting security measures.
- 5
Review Coverage Annually
Business risks change with growth and seasonal factors in Minnesota. A small landscaping company adding snow removal services needs updated liability coverage, while an expanding food delivery service requires additional vehicle insurance.
Minnesota Business Insurance: Bottom Line
Based on our analysis, NEXT, The Hartford and Simply Business are Minnesota's best business insurance providers. However, what's ideal for you depends on your business risks and employee needs. Research each company's service quality, maximize discounts and select coverage that fits your budget.
Small Business Insurance in Minnesota: FAQ
Minnesota business owners often have questions about their companies' insurance coverage. Our experts provide clear answers to your most common insurance questions below.
What business insurance is required by law in Minnesota?
Minnesota requires workers' compensation insurance for businesses with employees and commercial auto insurance with minimum limits of $30,000/$60,000/$10,000. Contractors must carry surety bonds, while general liability remains optional but commonly required by clients.
How much does business insurance cost in Minnesota?
Our analysis shows that business insurance costs range from $69 to $138 monthly, depending on coverage. Workers' compensation is the most economical at $69, while business owner's policies run $138. Actual costs depend on your industry, business size and claims history.
Which company has the cheapest business insurance in Minnesota?
The Hartford offers the lowest rates at $78 monthly in Minnesota, with Thimble ($88) and Simply Business ($91) following behind. Always compare quotes since rates vary based on specific risks.
What business insurance do I need for my small business in Minnesota?
Begin with general liability insurance to protect against customer injuries and property damage. Add workers' compensation for employees and commercial vehicle coverage if needed. Retailers need property insurance, while contractors require equipment coverage and builders risk insurance.
What is the best business insurance company in Minnesota?
NEXT leads Minnesota's business insurance market with a MoneyGeek score of 4.63 out of 5.0. The Hartford and Simply Business are also excellent choices. Compare multiple providers to find coverage that matches your business requirements.
Do small businesses in Minnesota need workers' compensation insurance?
Yes, Minnesota requires workers' compensation insurance for most businesses with employees. Only specific exemptions exist for sole proprietors and some family-owned businesses without additional employees.
What factors affect business insurance costs in Minnesota?
Your industry type significantly impacts insurance costs. Construction businesses pay higher premiums than consulting firms. Location within Minnesota affects rates, with urban areas having different risks than rural ones. Employee count drives workers' compensation costs, while claim history and safety training influence rates.
How do I get cheap business insurance in Minnesota?
Compare quotes from multiple insurers like NEXT and The Hartford. Assess your specific business risks first and consider bundling policies to maximize discounts and coverage value.
What's the difference between general liability and errors and omissions (professional liability) insurance in Minnesota?
General liability covers physical incidents like customer injuries and property damage at your business location. Professional liability protects against service-related mistakes, such as incorrect advice or missed project deadlines.
Can I get business insurance quotes online in Minnesota?
Yes, you can get online quotes from top Minnesota insurers. Complex businesses like contractors may need an agent's help for specialized coverage like pollution liability.
How We Scored the Best Business Insurance Companies in Minnesota
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 severe weather, tornado risks and the state's 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 premiums, deductibles and coverage limits to identify insurers offering the best value for small businesses.
- Customer experience (30% of score): Our analysis examined claims processing speed, customer support availability and online account management tools.
- Coverage options (15% of score): We evaluated policy customization options, industry-specific endorsements and bundling opportunities.
- Financial strength (5% of score): We reviewed AM Best ratings and other financial stability indicators to ensure reliable claims-paying ability.
This approach helps Minnesota small business owners compare insurers on what matters most: affordable premiums, reliable service, adequate coverage and financial stability.
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
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- Simply Business. "Simply Business Offers Insurance to Third-Party Sellers Through Amazon Insurance Accelerator." Accessed August 21, 2025.
- The Hartford. "Customer Claims Ratings and Reviews." Accessed August 21, 2025.
- Trustpilot. "NEXT." Accessed August 21, 2025.
- Trustpilot. "Simply Business US." Accessed August 21, 2025.
- Trustpilot. "The Hartford." Accessed August 21, 2025.