If your Minnesota partnership has employees, yes, it must carry workers compensation insurance, but the partners themselves are left off coverage by default. Minnesota treats a partner, along with their spouse, parent, and child, like a sole proprietor: off the policy unless they elect in. Every non-partner employee must be covered from day one, with no minimum headcount.
Who this is for: Partners in a Minnesota general partnership, from a two-person professional firm to a partnership with a payroll of employees.
The short version
- A partnership with employees must carry workers comp; there is no headcount minimum.
- Partners are left off coverage by default, the same as a sole proprietor.
- A partner's spouse, parent, and child are left off too, and can be electively covered.
- A partner who wants their own injuries paid elects in with written notice to the insurer; coverage starts the next day.
- Any non-partner employee the partnership hires must be covered from the first day.
How Minnesota treats partners
Minnesota leaves partners off coverage by default, which is the opposite of states that cover partners automatically. A partner engaged in the business, and that partner's spouse, parent, and child, are all left off unless they elect in. Electing in is done by giving written notice to the insurer, and coverage starts the day after the insurer receives it. If a partner stays off, none of their own on-the-job injuries are paid by comp, so a partner who does physical or field work usually wants to elect in. If a partner elects in, their share of pay is rated into the premium.
| Who | Left off by default? | What to know |
|---|---|---|
| Non-partner W-2 employee | No | Covered from day one; cannot be excluded |
| General partner | Yes | Off the policy unless they elect in with written notice |
| Partner's spouse, parent, or child | Yes | Left off with the partner; can be electively covered |
| Partnership with no employees | Partners off | Partners can each elect in; a policy may still be needed for a contract |
Whether partners elect in
Because partners start off coverage, the decision is whether any of them elect in. Electing a working partner in means comp pays if that partner is hurt on the job, which matters most for partners who do physical or field work. A desk-bound partner in a professional firm may decide the cost is not worth it and stay off, relying on other coverage for themselves. Either way, any employee the partnership hires must be covered from the first day, and a health plan may not pay for a work injury, which is worth weighing before a hands-on partner decides to stay off.
Why a partnership carries a policy anyway
Even a partnership with no employees often ends up buying coverage. Clients, landlords, and larger firms routinely require proof of coverage before they will sign, and a policy is frequently the price of the contract. And once the partnership hires its first employee, coverage is mandatory. Carrying a policy also protects the partnership: if it fails to carry required coverage, it loses the usual protection and an injured employee can sue the partnership directly for damages.
A St. Cloud example
Illustrative, not a quote. Two partners run a St. Cloud accounting firm with three employees. The three employees must be covered from day one. Because the partners sit at desks and face little injury risk, they each stay off the policy rather than elect in, which keeps their pay out of the premium, while the three employees stay fully covered. When a commercial client asks for proof of coverage before signing an engagement letter, the firm hands over a certificate the same day. See our workers comp for accounting firms page.
Real questions Minnesota owners ask
Does our Minnesota partnership need workers comp?
If it has any employees, yes, from the first one, with no headcount minimum. The partners themselves are left off coverage by default and can elect in if they want it.
Are partners covered by default in Minnesota?
No. Minnesota leaves partners off coverage by default, the same as a sole proprietor. A partner is on the policy only if they elect in with written notice to the insurer.
How does a partner elect coverage for themselves?
The partner gives written notice to the insurer. Coverage for that partner starts the day after the insurer receives the notice. It is handled through the policy, with no separate state form.
Are our spouses and children left off too?
Yes. A partner's spouse, parent, and child are left off coverage by default along with the partner. They can be electively covered if you want their work injuries paid.
Should our partners elect in?
It depends on the work. A partner who does physical or field work usually elects in, since comp pays for a work injury a health plan may not. A desk-bound partner is a more natural candidate to stay off.
Do we need a policy if the partnership has no employees?
Not by law for the partners alone, since they are off by default, but clients and landlords often require proof of coverage before they will sign, so many partnerships buy a policy anyway.
What if our partnership does not carry required coverage?
Minnesota can fine the partnership per employee for each week uninsured, pay an injured worker through the state's Special Compensation Fund and bill it plus a 65 percent penalty, and the partners can be sued directly.
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 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?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Do sole proprietors need workers comp?
- What workers comp does not cover
- Minnesota accounting firm 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.