What is Workers’ Compensation Insurance?

Workers’ Compensation Insurance benefits employees injured or ill during working hours. It is also known as employee compensation insurance. Another benefit of this workers’ compensation insurance is it also covers the employees’ families who die while on the job. All businesses in Minnesota are required to hire employees for their offices. 

Who Needs Workers’ Compensation Insurance?

Workers’ compensation laws vary from state to state, but in Minnesota, compensation insurance is compulsory for all businesses with one employee or more, including part-time employees.

Even though most employees in Minnesota are required to be covered by workers’ compensation insurance offered by their employers, some exceptions apply to specific categories of workers. These include:

• Domestic workers work in a private home and earn less than $1000 in three months.
• She hired employees or farm workers who receive less than a predetermined remuneration, as well as the farmer/employer and his / her family members (spouse, parent, or child).
• Casual employees are hired for normal services or non-core functions that do not form the company’s main business or are not worked for frequently or constantly. 

Do Minnesota Business Owners need workers’ compensation?

Minnesota’s Workers’ compensation insurance isn’t legally mandatory for business owners. It includes:

• Sole Proprietors and Independent Contractors

It is also possible for a sole proprietor to exclude members of the owner’s immediate family from the workers’ compensation plan. This is true even if the candidate is a distant relative. If he or she is hired, you need to make sure he or she has workers’ compensation.

• Partners of the Business

Another situation in which workers’ comp coverage is not mandatory is when all the company employees are partners or relatives of partners.

• Corporate Officers Who Own the Business

To be considered a corporate officer, they should own 25% or more of a closely held corporation, with ten or fewer employees and less than 22,880 payroll hours from the prior year. Spouses, parents, or children of the corporate officer are entitled to exemption. However, employees with less kinship with an officer may complete a written exclusion application.

• Members of Limited Liability Company (LLC)

The requirements for LLC members are nearly similar to those that apply to corporate officers of close corporations.

But if you are a sole proprietor or one of the above-stated who is excluded from the requirement to compulsorily obtain workers’ compensation insurance, it is still recommended that you get this coverage. When a worker is injured on the line, it is possible that the health insurance company can reject a claim, meaning that the worker will have to pay for the medical expenses.

Cost of Workers’ Compensation Insurance in Minnesota

Workers’ compensation insurance cost in Minnesota is based on several factors. The factors on which the cost is based are as follows,

• Classification
• Number of Employees
• Claims History
• Payroll
• Industry and Risk Factors
• Coverage History

How Do Workers’ Compensation Insurance in Minnesota?

Workers’ compensation pays medical expenses and compensation for wage loss to workers who get hurt or contract occupational diseases.

The injured workers in Minnesota have the following benefits under Workers’ compensation:

• Temporary total disability benefits (TTD)
• Temporary partial disability benefits (TPD)
• Permanent partial disability benefits (PPD)
• Permanent total disability benefits (PTD)
• Vocational rehabilitation services
• Medical benefits (surgery, physical therapy, prescriptions, other medical expenses)

For example, let’s consider a software developer who is diagnosed with carpal tunnel syndrome. It is likely to have been caused by excessive typing on the keyboard. The workers’ compensation policy will cover medical bills, including long-term prescriptions and physiotherapy.

Many policies contain employer liability insurance to protect the employer when the employee is sued for an injury. However, the most important provision of workers’ compensation policies is the exclusion of the right to sue clauses, which means an employee cannot sue their employer if they take workers’ compensation benefits.

Penalties for NOT having Workers’ Compensation Room in Minnesota

In Minnesota, certain companies may be told they cannot hire employees until they have the workers’ compensation insurance they have not purchased. A fine can be given to pay a fine of up to $1,000 per employee/week in which the company failed to provide workers’ compensation insurance.

For example, if one of your employees gets injured or develops a work-related illness, plus you didn’t sign up for the insurance by that time, you may be compelled to reimburse the state for the workers’ compensation benefits paid to the person and 65% penalty of the benefits given. Other penalties may also be imposed depending on the nature of the violation that is being committed.

Workers’ Compensation Settlements In Minnesota

Therefore, a workers’ compensation settlement is a contractual undertaking by the parties to determine how a workers’ compensation dispute will be handled. This fact is beneficial for the employee and for the employer as well. Settlements in a Minnesota workers’ compensation claim fall into two categories:

1. To-date settlements: Settle the case as far as possible up to the settlement date but keep the possibility of further proceedings beyond the settlement date open.
2. Full and final settlements: These will shut down the entire case but may sometimes allow the continuation of submitting medical claims.

Workers’ Compensation Statute of Limitations In Minnesota

Minnesota’s workers’ compensation law prescribes a three-year limitation on filing a claim. It starts from the date of injury or the first manifestation of the disease, provided the employer filed the first report of injury with the Minnesota Department of Labor and Industry.

If the employer fails to prepare this report, the workers are barred from filing the suit six years after the incident date.

Top Cities Where We Provide the General Liability Insurance in Minnesota

• Minneapolis
• Saint Paul
• Rochester
• Bloomington
• Duluth
• Brooklyn Park
• Plymouth
• Woodbury
• Lakeville
• Blaine
• Maple Grove
• St. Clous
• Eagan
• Burnsville
• Coon Rapids and many others

Why Choose Us?

We perform all standard operating procedures professionally and address clients’ simplification of workloads within our agency. In our numerous years of operation in this industry, it is not just to provide the clients with insurance policies but also concentrate primarily on the needs assessment and go further to ensure that we have provided the client with the most suitable workers’ compensation insurance quote in Minnesota. 

That being said, here are possible questions the agents may ask: 

• Business Name 
• Business Type 
• Address 
• Owner’s Details 
• Phone Number 
• Email Address 
• Employee Names 
• Claim History Letter 

Your information is always safe with us, and we cherish our customers and their privacy. It is our policy not to use your personal information for any other purpose, so you will not be subjected to several calls convincing you to purchase other insurance plans. 

Steps to Secure the Right Insurance in Minnesota with Us!

1. Provide Details:

Please fill out a short form or call us at 952-222-8073 to provide our dedicated agents with vital information about your business, yourself, and our company.

2. Request a Quote:

After you provide us with your details, our licensed agents will contact reputed insurance providers and shortlist the best quotes suitable to your needs in Minnesota. 

3. Hassle-Free Process: 

Once you are ready to move to the next level, we will mail them online. You can sign them with a tap on your smartphone or computer, making the process easy. 

You have decided to protect your company with workers’ compensation insurance. This is why, when appointed, our agents will immediately get to work to guarantee business protection. 

Do not wait anymore—contact us for suitable and prompt workers’ compensation insurance services! Complete our (short) online form or call 952-222-8073.