Picture of osterbauer


What Business Owners Need to Know About Workman’s Comp Insurance

Most businesses in the state of Minnesota with employees are obligated under the law to carry workman’s comp insurance. Minnesota employees can receive the benefit of this insurance coverage in the form of financial compensation when they sustain a work-related injury. At Osterbauer Law Firm, we have the resources, experience, and skills to help you, as a covered employee, obtain your rightful workman’s comp insurance. Minnesota workers can benefit significantly from the coverage provided under state law when injured on the job.

Below are some things Minnesota business owners need to know about workers’ compensation insurance:

Businesses Required to Have Workman’s Comp Insurance?

Business owners in Minnesota are generally required to carry workers’ compensation insurance, even if the business only has one employee and that employee works part-time. There are some exceptions for workers who earn less than $1,000 in a 3-month period and work in private homes, employees who are family members (in some cases), and those who work in farming. Also, certain business owners, including those who are sole proprietors, certain corporate officers, and members of LLCs are not required to carry workers’ comp insurance.

Where Insurance is Available

Workers’ comp insurance in Minnesota is provided through private insurers. If a company is not able to obtain insurance coverage from a private insurance company, it may obtain it through assigned risk-pool insurance. Or, a company may opt to self-insure, but small businesses may not be wise in going the self-insurance route since a significant amount of money must be reserved in order to pay out potential injury claims.

What to Do If an Employee Reports an Injury

Employees may have a varying number of days to inform their companies of injuries they sustain on-the-job. The timeframe can vary from 14 days, to 30 days, to as much as 180 days, depending on the specific circumstance. Once the company is notified by its employee of his or her injury, the company must report the injury to its workers’ compensation insurance company using the “First Report of Injury” (Form FR01). The company must complete and file the form within 10 days of the injury notification.

If it is a serious injury or an injury that resulted in the decease of the worker, the company must file the report within 48 hours. Then the insurance company must file the injury report with the state’s Department of Labor and Industry (DLI). The company must keep a copy of the report for its records and send a copy to its injured worker.

There are other steps beyond those mentioned above in the workers’ compensation process.

The Possible Consequences of Not Having Workers’ Comp Insurance

If you do not carry the workman’s comp insurance you are required to carry, you may be subject to various penalties that include, but are not necessarily limited to:

  • A fine of $1,000 per week for each employee while your business remains uninsured
  • An order by the state to refrain from hiring anyone else until you obtain the required workers’ comp insurance
  • An order to pay the state the injured employee’s benefits in addition to an amount equal to 65% of those benefits

Of course, a business may decide for certain reasons to deny an employee’s workers’ compensation claim. If the company does this, it or its insurance company must send the employee a denial of liability notice within 14 days of receiving notification of the injury. In response, the employee may file an Employee Claim Petition form (EC04) with the DLI. Such a denial may lead an employee to seek and obtain help from an experienced workers’ comp attorney to fight for his or her benefits.

Our Minnesota workman’s comp insurance attorneys at Osterbauer Law Firm can help you secure the benefits you are owed under the law in the aftermath of sustaining a workplace injury. To schedule a free, no-obligation case consultation, call us today at 612.334.3434 or drop us a message through our contact form.


Leave a Reply

Your email address will not be published. Required fields are marked *