Workers compensation insurance for contractors in Minneapolis Minnesota
What is workers compensation insurance?
Minnesota workers compensation insurance is basically a health insurance and disability policy combined together with some new rules. It provides wage replacement and medical coverage to employees who are hurt or injured during their employment. It’s an exchange for the benefits, the employee gives up the right to sue the employer.
How much does workers compensation cost in Minneapolis Minnesota?
It depends on what you do. There are classifications for each type of work. The riskier the type of work, the higher the rate. A roofer would pay a much higher rate than a plumber and carpenter would pay a higher rate than an electrician or sales person as example.
The coverage is then rated on payroll. There is minimum payroll for ghost or waiver types of policies in Minnesota (no payroll), but most companies will have employees. The higher the payroll, the higher the rate.
Other factors can include the time you have had continuous workers compensation insurance coverage and having one-three full time employees. Also, your claims experience can be a positive or negative factor.
Is workers compensation insurance a requirement in Minneapolis Minnesota?
It depends on who you are asking. If you are asking the State of Minnesota and you have employees, then absolutely yes, If you don’t have employees then the answer is no.
Now let’s talk about general contractors. In Minnesota, general contractors are held accountable by an old Minnesota State Statute 176.215. An employer in Minnesota is generally responsible for providing workers comp. for its own employees. The statute is an exception to the rule. If a general contractors sub-contractor fails to provide workers compensation insurance for their employee(s), the general contractor is liable for the workers comp benefits due the injured employee or the uninsured subcontractor. This huge and why ghost or waiver policies are written for contractors without employees (zero payroll). It a safety net for the general contractors.
I don’t need workers compensation insurance, I don’t have employees. Again, it depends who is asking
What can I do to keep my workers compensation costs down in Minneapolis Minnesota?
There are several things that can keep your rates under control. Continuous coverage and no claims for starter. The State of Minnesota requires you have workers compensation if you have employees. Putting a gap or lapse in that coverage does not help your rates. Neither does switching carriers each year. Worker compensation companies are smart and not in it to lose money.
We see misclassifications from time to time. Being rated wrong can certainly hurt you. It’s important you’re with an agent that’s sharp and knows what they are doing. We are and do! ☺
A proper risk management program and return to work program is also key keeping claims and costs down.
Request an online workers compensation insurance quote or give us a call.
We make it easy to shop for and buy workers compensation insurance coverage in Minneapolis Minnesota. Our website is available 24/7 and our staff is on duty Monday through Friday.