Is workers' comp required in Minnesota?

Yes, workers' compensation insurance is mandatory for nearly all employers in Minnesota, regardless of the number of employees, even if you have just one part-time worker. The Minnesota Department of Labor and Industry requires this coverage to ensure employees are compensated for work-related injuries. Failure to comply can result in significant penalties.

What are Minnesota's commercial auto insurance minimums?

Minnesota requires all business-owned vehicles to be covered by commercial auto insurance with minimum liability limits of $30,000 per person and $60,000 per accident for bodily injury, and $10,000 for property damage. As a no-fault state, Minnesota also mandates Personal Injury Protection (PIP) to cover medical expenses for you and your passengers, regardless of who is at fault.

How much does business insurance cost in Minnesota?

The cost of business insurance in Minnesota can vary widely depending on your industry, the size of your business, and the types of coverage you need. On average, a small business in Minnesota might pay around $36 per month for general liability insurance. However, your specific premium will be determined by your unique risks and operational details.

All Licensed States

MN — Licensed & ActiveUpdated Mar 2026

Commercial Insurance in Minnesota.

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Minnesota's diverse economy, from the bustling tech and healthcare sectors in the Twin Cities to the vital agricultural and manufacturing industries statewide, requires specialized insurance solutions. Whether you operate a medical practice in Rochester or a construction firm in Duluth, RISKX delivers customized commercial insurance to protect your Minnesota-based business from liability and regulatory risks.

Key Industries in Minnesota

Healthcare & Medical TechnologyManufacturing & EngineeringAgriculture & Food ProductionTechnology & Software DevelopmentConstruction & Skilled TradesRetail & Hospitality

Workers' Compensation in Minnesota: Required

Minnesota law mandates that all employers must carry workers' compensation insurance for their employees. This applies to any business with one or more employees, with very limited exceptions for certain family members in small businesses. The state operates a competitive market, allowing businesses to purchase coverage from private insurers.

Minnesota Regulatory Notes

Workers' compensation is mandatory for all employers with one or more employees.

Minnesota is a no-fault state for auto insurance, which impacts commercial auto policies and claims.

State law requires specific data breach notification procedures, making Cyber Liability crucial for businesses handling sensitive information.

Minnesota has specific regulations regarding commercial vehicle operations, including intrastate trucking requirements.

Workers' Comp Rate Details — Minnesota

Index Rate

$1.25

per $100 payroll

National Rank

#17

of 51 jurisdictions

vs. Median

15%

above national median

Required At

1 employee

Above Average Cost

•Required for all employers with 1 or more employees
•Minnesota Assigned Risk Plan for hard-to-place risks

Penalty for non-compliance: Gross misdemeanor; fines up to $1,000 per day; stop-work orders

Rate data: Oregon DCBS 2024 Premium Rate Ranking Study. Index rates represent the median rate per $100 of payroll across all classification codes.

Auto Insurance Minimums — Minnesota

Min. BI Liability

30/60

per person/accident ($K)

Min. Property Damage

$10,000

PIP Required

Yes

No-Fault State

Yes

No-Fault State: Minnesota uses a no-fault auto insurance system. Personal Injury Protection (PIP) covers your own injuries regardless of fault. This affects how commercial auto claims are handled and may require additional coverage.