The state of Minnesota follows a mandatory compensation coverage law that requires every employer in the state to purchase compensation insurance for all their workers. The insurance provides compensation to all workers who suffer from work-injuries.
It does not matter if you run a business with only one employee that is a part-timer. You have to provide them with compensation insurance. There are limited exceptions that apply only to specific farmworkers, a member of your family who is an employee and private home workers with an earning of less than $1000 in three months.
If you want to cover your employees with insurance, you can speak to private insurance companies. You may also seek coverage from assigned risk-pool insurance. If you have a big business, you may choose to self-insure yourself. However, you should note that it may require you to set aside a considerable amount of money to cover for any potential claim.
When you receive a notification from your employee of an injury they received while working, you should immediately report it to your insurance carrier. The report should be within the first ten days of receiving the notification. However, you should report serious injuries or injuries that result in the death of the worker within 48 hours of receiving the report.
But what happens if you do not believe the claim is valid? According to Nolo, you have the right to deny your worker the compensation claim. Your insurer as well can deny them the request. However, you have to do it within 14 days of receiving the injury notification.
The worker may then file an employee claim petition with the Department of Labor and Industry, who will then hold a conference to help solve the dispute. If the decision is not to your liking, you may appeal before a compensation judge.
Failing to provide your workers with compensation insurance may result in several penalties. The state may choose not to allow you to employ anyone till you get all the insurance requirements. You may as well pay a fine of about $1000 every week for every employee if you do not have insurance.
