In Minnesota you get workers compensation by buying a policy from a private insurer licensed in the state, because there is no state fund. If no carrier in the open market will take you, the state's assigned-risk plan is the guaranteed backstop, so every Minnesota employer that needs coverage can get it. Larger employers can also apply to self-insure with approval from the Department of Commerce.
Who this is for: Minnesota owners buying workers comp for the first time, or ones who have been turned down and need a path to coverage.
The short version
- Minnesota has no state fund, so you buy from a private insurer on the open market.
- If no carrier will take you, the assigned-risk plan is the guaranteed-issue backstop.
- Larger employers can apply to self-insure with approval from the Department of Commerce.
- You will need your payroll by job type, the kind of work you do, your business details, and any claims history.
- A broker can shop several carriers at once and place hard-to-cover work in the backstop plan.
Your three paths to coverage
Almost every small business takes the first path. The open market is where private carriers compete, and a broker can shop several at once to find one that wants your kind of work. If your work is high-risk or your claims history is rough and no carrier will voluntarily write you, the assigned-risk plan exists so you are never left without options; it is the guaranteed-issue pool of last resort, and applications go in through the rating bureau's online system. The third path, self-insurance, is for larger, financially strong employers that get approval from the Department of Commerce to pay their own claims.
| Path | Who it fits | How it works |
|---|---|---|
| Private carrier (open market) | Most small and mid-size businesses | A broker shops licensed carriers and places your policy |
| Assigned-risk plan | Hard-to-place or high-risk work turned down elsewhere | Guaranteed-issue backstop; applied for through the rating bureau |
| Self-insurance | Large, financially strong employers | Approved by the Department of Commerce to pay claims directly |
What you need to get quoted
Getting a quote goes faster when you have a few things ready: your estimated payroll broken out by job type, a clear description of the work your people do, your business formation details, and any past claims. That lets a carrier put your payroll in the right work categories, which drives the price. If you are a one-person business that just needs proof of coverage for a client, a low-payroll policy built around the owner, sometimes called a ghost policy, is often the simplest fit.
If you have been turned down
Being declined by a carrier is not the end of the road in Minnesota. High-risk trades and businesses with a claim or two are often declined in the open market, and that is exactly what the assigned-risk plan is for. A broker can take you straight to the backstop plan so you get the coverage you are required to carry, then work to move you back to the open market once your record supports it. The goal is continuous coverage, because a gap is what triggers the penalties.
A Minnesota trucking example
Illustrative, not a quote. A Minnesota trucking company with a couple of past claims is turned down by two carriers that do not want the risk. Rather than go uninsured, it applies through the assigned-risk plan and gets the coverage it is required to carry, with the payroll rated on the right categories so the price is fair. Over the next couple of years, with a clean record and a safety program, we work to move it back to the open market at a better rate. See our workers comp for trucking businesses page.
Real questions Minnesota owners ask
How do I get workers comp in Minnesota?
You buy a policy from a private insurer licensed in Minnesota, because there is no state fund. A broker can shop several carriers for you, and if none will take you, the assigned-risk plan is the backstop.
Does Minnesota have a state workers comp fund I buy from?
No. Minnesota has no state fund. Coverage comes from private carriers on the open market, with the assigned-risk plan as a guaranteed-issue backstop and self-insurance available for large employers.
What do I need to get a quote?
Have your estimated payroll broken out by job type, a description of the work your people do, your business formation details, and any past claims. That lets a carrier rate your payroll on the right categories.
What if every carrier turns me down?
You use the assigned-risk plan, Minnesota's guaranteed-issue backstop for employers no carrier will voluntarily write. Applications go in through the rating bureau's online system, and a broker can handle it for you.
Can I self-insure in Minnesota?
Larger, financially strong employers can apply to self-insure with approval from the Department of Commerce, which lets them pay their own claims. It is not a fit for most small businesses.
I just need proof of coverage for a client. What is the simplest option?
If you are a one-person business with no employees, a low-payroll policy built around the owner, sometimes called a ghost policy, produces the certificate a client or general contractor asks for.
How fast can I get covered?
Often the same day or within a day or two on the open market once we have your payroll and business details. Hard-to-place work through the assigned-risk plan can take a little longer.
Why Minnesota owners choose Morrow
- We shop the right market for you. In Minnesota you buy workers' comp on the open, competitive market from any private insurer licensed in the state, because there is no state fund, and if no carrier will take you the assigned-risk plan (MWCARP) is the guaranteed backstop, so we can shop your rate freely and still have a fallback for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Minnesota guides
Every Minnesota business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Minnesota (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What is a ghost workers comp policy?
- Hiring your first employee: what changes
- Minnesota trucking workers comp
This guide is general information, not legal advice. Minnesota rules and penalty amounts can change, so verify current requirements with the Minnesota Department of Labor and Industry or a licensed advisor before you rely on them. Last updated: July 2026.