Minnesota Workers Compensation Insurance-Workmans Compensation

Minnesota Workers Compensation Rules

Minnesota Workers Compensation Insurance

1. Does my Minnesota business need workers compensation insurance?

Minnesota Workers' Compensation law states all employers are required to purchase workers' compensation insurance or become self-insured. This is often referred to as "mandatory coverage." Employees are generally defined as people performing services for another, for hire, including minors and workers who are not citizens.

2. In Minnesota who can exempt themselves from Workers Compensation Insurance?

Some employers are exempt and these exemptions are specified in Minnesota Statutes. Follow the link below to view the Stautes related to exemptions from workers' compensation insurance coverage.

3. Does Minnesota workers compensation law have specific requirements for subcontractors/contractors and sole proprietors?

The following applies only to independent contractors doing commercial or residential building construction or improvements in the public or private sector.

Independent contractor status will be conferred if the individual meets all nine of the following conditions. If any one of the conditions is not met, the individual will be an employee for purposes of workers' compensation insurance requirements. The individual is considered an independent contractor if the individual:

* Maintains a separate business with the independent contractor's own office, equipment, materials and other facilities

* Holds or has applied for a federal employer identification number, or has filed business or self-employment income tax returns with the IRS based on that work in the previous year

* Operates under contracts to perform specific services or work for specific amounts of money and under which the independent contractor controls the means of performing the services or work

* Incurs the main expenses related to the service or work that the independent contractor performs under contract

* Is responsible for the satisfactory completion of work or services that the independent contractor contracts to perform and is liable for a failure to complete the work or service

* Receives compensation for work or service performed under a contract on a commission or per job or competitive bid basis and not on any other basis

* May realize a profit or suffer a loss under contracts to perform work or service

* Has continuing or recurring business liabilities or obligations

* The success or failure of the independent contractor's business depends on the relationship of business receipts to expenditures.

Sole Proprietors are not required to carry workers' compensation insurance. However, once a non-immediate family member is hired, workers' compensation insurance is required.

Employee Leasing and Staffing Companies

Using a PEO or staffing company to obtain your workers compensation may be a good alternative to purchasing your own workers compensation policy. Leasing companies handle your payroll, w-2 forms, unemployment and workers compensation claims. In many cases the down payment required to obtain a new workers compensation policy is high and many new businesses cannot afford the down payment. Another advantage, based on my experience, is that you will never get audited because you pay as you go for your coverage. We represent numerous leasing and staffing companies who in many cases offer deep discounts on your workers compensation coverage that you will not find from standard workers compensation insurance carriers.

USL&H & The Jones Act

We have excellent workers compensation programs for these specialty risks requiring this endorsement. If you are unsure and want to read either the USL&H or Jones Act I have provided helpful links below for you convenience. I have found them to be the most detailed and good resources on the laws.

Minnesota Workers Compensation Insurance

Minnesota Workers Compensation Links

News and Legislative Updates
Minnesota Workers Compensation Act
Minnesota Workers Comp. Forms
Minnesota Industrial Commission Rules
Guide to Minnesota Workers Compensation System
Quick Facts and Contact Information