Workers' Compensation by state

Workers' compensation requirements in Minnesota

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Does Minnesota require workers' compensation insurance?

Yes. Minnesota requires workers' compensation coverage once a business has one or more employees, under the Minnesota Workers' Compensation Act. Minnesota requires nearly all employers with one or more employees to carry workers' compensation coverage. Coverage is provided through private insurers or an approved self-insurance program.

Reviewed by Cornerstone Staff28 years of financial services state licensing experienceLast verified July 29, 2026

How the mandate works

Minnesota requires nearly all employers with one or more employees to carry workers' compensation coverage. Coverage is provided through private insurers or an approved self-insurance program.

Coverage trigger: One or more employees
If you go without coverage: Employers without required coverage can face penalties of a set amount per uninsured employee per week and personal liability for benefits.

Notable exemptions

Exemptions are narrow and fact-specific; confirm your situation with the regulator or an agent before relying on one.

Sole proprietors, partners, and certain closely held corporate officers who may elect out
Some family farm operations below statutory payroll thresholds
Certain casual workers not in the usual course of the business

Statutes and sources

Minnesota Workers' Compensation Act

Minn. Stat. sect. 176.001 et seq.

Regulator: Minnesota Department of Labor and Industry, Workers' Compensation Division . Last verified 2026-07-29 from the official source .

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