Insurance in Minnesota

Minnesota requires specific insurance as part of certain trade licenses, and requires workers' compensation for most employers. The market (general contractors, commercial customers) will expect higher coverage limits than the statutory minimums. 1. Workers' compensation. Minnesota Statutes Chapter 176 requires virtually all Minnesota employers to carry workers' compensation insurance or to be approved as a self-insurer. A contractor with employees cannot legally operate without coverage. Officers of a closely-held corporation may elect out under narrow statutory conditions; sole proprietors and partners are not required to cover themselves but usually do. Source: Minnesota Department of Labor and Industry — Workers' Compensation (https://www.dli.mn.gov/business/workers-compensation). 2. Commercial general liability. Minnesota does not mandate a blanket CGL minimum for every trade, but the Electrical Contractor, Plumbing Contractor, and mechanical-contractor bonding regimes are designed around the assumption that the firm also carries liability coverage. Typical job requirements on commercial work are $1M per occurrence and $2M aggregate. 3. Commercial auto. A personal auto policy almost certainly excludes business use. Hired and non-owned auto coverage protects against claims arising from employee-owned vehicles used on company business. 4. Tools and equipment (inland marine). Homeowners and auto policies exclude business tools beyond small dollar limits. Inland marine is the contractor-specific tool coverage. 5. Umbrella. A $1M or $2M umbrella is inexpensive relative to what it protects and is often required on commercial GC paperwork. 6. EPA Section 608 is not insurance, but any HVAC technician handling regulated refrigerants must hold current certification under 40 CFR Part 82 Subpart F. Insurers increasingly ask for proof. Shop the market. Trade association programs (ABC, AGC, PHCC, MCA, NECA) often have group insurance programs that beat street-rate premiums for the trade. Never let coverage lapse during an active job. A one-day gap on a multi-month project is enough to void a claim if something happens during the gap.