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Minnesota Department of Labor and Industry

Workers' compensation -- About workers' compensation coverage

Who needs workers' compensation coverage?

All employers are required by Minnesota Statutes, section 176.181, subdivision 2, to either purchase workers' compensation insurance to provide benefits to their employees for work-related injuries or obtain approval from the Minnesota Department of Commerce permitting self-insurance upon proof of the employer's financial ability to do so. There is no minimum number of employees an employer must have before insurance is required; therefore, an employer with only one part-time employee generally must provide coverage. Several penalties may be assessed against employers that fail to properly ensure their employees.

Employees are generally defined as people performing services for another, for hire, including minors, part-time workers and workers who are not citizens. Information about limited exceptions to mandatory coverage are explained in a workers' compensation insurance fact sheet.

Workers' compensation insurance lookup grahicThe Special Compensation Fund unit investigates employers that may not have carried workers' compensation insurance coverage for employees. Results of these mandatory coverage investigations may be referred for civil penalty action (see Fines and penalties for failure to insure).

If you have questions regarding the need to obtain workers' compensation coverage, contact DLI's Alternative Dispute Resolution unit at (651) 284-5032 or 1-800-342-5354.

How to obtain workers' compensation coverage

Workers' compensation insurance in Minnesota may be purchased through an insurance agent or directly from an insurance company. Learn more ...

Report a business that does not have workers' compensation coverage

To report a business that does not have workers' compensation coverage, you do not need to give your name. You may complete an online form or contact DLI's Special Compensation Fund unit by phone at (651) 284-5453 or by email.

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