Minnesota Business Insurance Guide 2026

Who must carry it: 1 or more employees, including part-time (Minnesota Department of Labor and Industry: Who needs workers' compensation coverage?).

There is no minimum number of employees an employer must have before insurance is required; therefore, an employer with only one part-time employee generally must provide coverage.

Source: Minnesota Department of Labor and Industry: Who needs workers' compensation coverage?

Exemptions and exclusions

Limited exceptions are listed in Minn. Stat. § 176.041. The department notes that some officers of closely held corporations, some LLC managers and certain relatives are excluded if specific requirements are met, and that a household employing a nanny or domestic worker may be required to carry coverage (Minnesota DLI workers' compensation fact sheet).

The agency to ask is the Minnesota Department of Labor and Industry, Workers' Compensation Division. Our workers' compensation guide explains the coverage, and the workers' comp calculator checks the payroll arithmetic in a proposal.

Minnesota's minimum auto liability limits:

• Bodily injury liability: $30,000 per person and $60,000 per accident
• Property damage liability: $10,000 per accident
• Start date: not stated in the source; confirmed in force on October 3, 2026
• Source: Minn. Stat. § 65B.49 (Minnesota Revisor of Statutes)

Basic economic loss (no-fault) benefits are also required, along with separate uninsured and underinsured motorist coverages of at least $25,000 per person and $50,000 per accident each (Minn. Stat. § 65B.49 (Minnesota Revisor of Statutes)). Ask your insurer whether these also apply to your commercial and fleet policies.

Commercial and for-hire vehicles can face different or higher federal or state requirements. Our commercial auto guide covers owned, hired and non-owned vehicles.

Minnesota Paid Leave, run by the Department of Employment and Economic Development, launched on January 1, 2026, with premiums and benefits starting together, and the first premiums were due April 30, 2026 (Minnesota Paid Leave FAQ). For 2026 and 2027 the premium is 0.88% of wages (0.27% family, 0.61% medical) up to the Social Security (OASDI) wage base; qualifying small employers (30 or fewer workers and an average wage within the state limit) pay 0.66%, and employers may collect up to 0.44% from employees (Minnesota Paid Leave premium rate).

For 2026 and 2027, the Paid Leave premium rate is 0.88%.

Source: Minnesota Paid Leave, Premium rate and contributions

What employers do: Report quarterly wage detail and pay Paid Leave premiums through the Employer Account at ui.mn.gov, unless an approved equivalent plan is in place (Minnesota Paid Leave: employer roles); employers must pay at least 50% of the premium, or 33% for qualifying small employers (Minnesota Paid Leave premium rate).

In Minnesota, licenses, leases and client contracts can add their own insurance or bond conditions, such as minimum general liability limits; track each one with the certificate of insurance checklist and compare states in the requirements-by-state guide.

• Workers' compensation: Minnesota Department of Labor and Industry, Workers' Compensation Division
• Auto liability minimums: Minn. Stat. § 65B.49 (Minnesota Revisor of Statutes)
• Paid leave and disability insurance: Minnesota Department of Employment and Economic Development (DEED), Paid Leave Division

To prepare, run the state requirements checklist with your employee count and vehicle use; for a PolicyBenchmark follow-up, request coverage help.