Workers’ compensation insurance protects businesses and their employees from the cost of workplace injuries. You may also hear it called “work comp” or “workman’s comp.”

Workers’ comp covers medical bills and lost wages when someone is injured at work. Benefits can also include payments to compensate for permanent disabilities and to dependents of workers who are killed in job-related incidents.

Unlike other lines of insurance, workers’ compensation doesn’t offer different or optional levels of coverage for you to choose. When your policy is in place, it covers every work-related injury considered compensable by Minnesota state law.

Workers’ comp benefits are determined by state law and don’t vary from policy to policy within the state. They are designed to:

• Replace wages lost when an employee is unable to work due to a work injury
• Cover medical bills related to on-the-job injuries

Benefits can also include payments to compensate for permanent disabilities and to dependents of workers who are killed in job-related incidents.

According to the Minnesota Department of Labor and Industry , Minnesota law requires you to purchase workers’ compensation coverage if you have full-time, part-time or temporary employees working in Minnesota.

There are some exceptions as determined by Minnesota state law (if certain requirements are met):

• Sole proprietors
• Partners
• Managers of a limited liability company (LLC)
• Family members such as spouses, parents or children
• Independent contractors and subcontractors

While not required, in most situations these individuals do have the option to include themselves in a policy.

Businesses that don’t currently have employees can also purchase a small policy to cover future employees.

See Minnesota state law for specifics.

Your workers’ compensation premium is based on the type of work your business does, how dangerous your industry is, and the amount you pay your employees. Other factors affecting price include your business’ commitment to safety and history of work injuries. Basically, the safer you keep your workers, the less it costs you to insure them.

Workers’ comp policies are issued annually, with a required review or “audit” at the end of each year.

Sometimes accidental injuries are out of your control, but you’d be surprised how much control you do have. For example, slips and falls are very common causes of serious work injuries. Simply ensuring that your parking lot is shoveled and salted in the winter, and keeping your indoor work environment tidy could prevent one of these accidents.

Our top three tips for holding down your claim costs:

1. Make workplace safety a high priority. Find many general and industry-specific resources to make your workplace safer in our resource catalog.
2. Report claims right away. Our claims representatives are experts in making sure injured workers get the care they need to ensure a smooth and speedy recovery.
3. Provide light-duty work to injured employees who have medical restrictions rather than having them stay off work until they can return to their regular jobs.

Learn more about keeping workers’ compensation costs low.

You have a couple of options for purchasing a workers’ compensation policy in Minnesota. Since Minnesota has a voluntary market, you can purchase workers’ comp insurance from any independent insurance agent or insurance carrier that is licensed to provide coverage in Minnesota (like SFM).

To get your workers’ comp coverage directly through SFM, request a quote on our website or call us at (844) 828-3801.

If you choose to work with an independent insurance agent but don’t already have a relationship with one, use our tool to find an agent in your area.

Since workers’ comp coverage is mandated by the state, the Minnesota Department of Labor and Industry’s workers’ compensation page is your go-to source of information. You can also call them at (800) 342-5354.

Visit the Minnesota Occupational Safety and Health Administration (MN OSHA) page for safety requirements and information.

The Minnesota Safety Council also provides helpful safety information.

Minnesota’s workers’ compensation statutes are also available online through the Minnesota Legislature.

If you’re having trouble purchasing a workers’ compensation policy through the voluntary market, you can contact the Minnesota Workers’ Compensation Assigned Risk Plan (MWCARP) to obtain coverage.