In Minnesota, whether a business owner or corporate officer is covered by workers' compensation — and whether they can change that — depends on the entity type and Minnesota's own rules. Getting the election right affects both your protection and your premium. Here is how inclusion and exclusion work in Minnesota, the form or filing to use, and what it means for your policy.
Who must carry workers' compensation in Minnesota?
Mandatory from the first employee — no numeric minimum.
Can owners and officers be included or excluded in Minnesota?
| Sole proprietor | Excluded (with spouse/parents/children); may elect in. |
|---|---|
| Partners | Excluded; may elect in. |
| LLC members | A manager is excluded if the LLC has 10 or fewer members, under 22,880 payroll hours in the prior year, and the manager owns 25%+; may elect in. |
| Corporate officers | An executive officer of a closely held corporation (10 or fewer shareholders, under 22,880 hours, 25%+ stock) is excluded; may elect in. Officers failing those tests are covered. |
How to make the election in Minnesota
- Our form: CWCO General Inclusion / Exclusion Form — records the election where Minnesota does not publish its own form.
Payroll counted for an included owner in Minnesota
When an owner or officer is included, premium is figured on their payroll between a minimum and maximum (effective 2026), set by MWCIA.
| Included owner/officer minimum | $73,996 per year |
|---|---|
| Included owner/officer maximum | $295,984 per year |
These amounts update periodically; we confirm the current figure for your policy. Source: MWCIA.
Minnesota's assigned-risk / residual market
An employer that can't secure workers' comp in the standard market can still get covered through Minnesota Assigned Risk Plan (MWCARP); rating bureau MWCIA. We market your risk to voluntary carriers first and turn to the residual market only as a last resort.
Related
Minnesota business insurance · Workers' compensation coverage · Minnesota Department of Labor & Industry, WC Division.
Frequently Asked Questions
Do business owners have to carry workers' comp on themselves in Minnesota?
It depends on your entity and role. Excluded (with spouse/parents/children); may elect in. An executive officer of a closely held corporation (10 or fewer shareholders, under 22,880 hours, 25%+ stock) is excluded; may elect in. Officers failing those tests are covered. Employees are always covered.
How do I include or exclude an owner from workers' comp in Minnesota?
The right form, portal, or endorsement depends on your entity type. Minnesota records the election on the policy with the carrier; our general inclusion/exclusion form documents it.
What payroll is used for an included owner in Minnesota?
$73,996 to $295,984 per year We confirm the current figure for your policy.
Can Cory Washington & Co. handle my Minnesota workers' comp election?
Yes. We confirm which rule applies to your entity, prepare the correct form or election, coordinate it with your carrier, and keep your workers' comp aligned with the rest of your program. Request a quote or a policy review and we'll take it from there.
This page is general educational information from Cory Washington & Co. LLC about how workers' compensation owner inclusion and exclusion works in this state. It is not legal, tax, or insurance advice and is not a determination of your eligibility or obligation. Workers' compensation laws, forms, payroll limits, and residual-market programs change and depend on your entity type, ownership, and operations. Confirm the current rules and amounts with your licensed advisor at Cory Washington & Co. LLC and the state agency before making any election.