Workers of Minnesota businesses who suffer job-related injuries or illnesses often file workers’ compensation claims. If you recently opened your own company, it’s crucial to have the facts about workers’ comp to protect your company and your employees.
Understanding workers’ compensation insurance
Workers’ compensation insurance offers benefits to workers and employers: Injured workers can recover a percentage of their wages while unable to work, and employers are protected from personal injury lawsuits. When an injured or sick worker files for workers’ comp, it means they agree not to sue their employer.
Workers’ compensation requirements
Most businesses in Minnesota are required to carry workers’ compensation insurance. Those with at least one employee, even if they’re part-time, must have it in the event that the worker needs coverage. There are some exceptions: If the business is within a private home or workers earn less than $1,000 within three months, it is not required.
As a business owner, you can obtain workers’ compensation through private insurance companies or through assigned risk-pool insurance. Some businesses self-insure, but that isn’t always the best option for small businesses because of the higher costs.
Necessary steps for on-the-job injuries or illnesses
If an employee suffers a work-related injury or illness, they must report it to their employer within 14, 30 or even 180 days. The employer is then required to report the situation to their workers’ compensation insurance carrier by filling out a First Report of Injury form, Form FR01. This should be filed within 10 days after being notified, but if a severe injury or fatality occurs, the employer should report it within 48 hours. The Department of Labor and Industry (DLI) handles all claims.
Employers that should carry workers’ comp but don’t may be held liable if an employee has an accident while working and suffers injuries.
