Minnesota contractor insurance requirements

Workers' comp in Minnesota

Minnesota has no minimum number of employees: almost every employer must carry workers' comp, even for one part-time employee.

The agency in charge is the Minnesota Department of Labor and Industry. It can tell you whether a specific business needs coverage, and most states let you look up an employer's policy online.

Contractor licensing and insurance

Minnesota residential building contractors and remodelers must carry general liability of at least $100,000 per occurrence and $300,000 aggregate plus $25,000 in property damage, or a $300,000 single limit.

Indemnity and additional insured clauses

Minnesota's anti-indemnity statute (Minn. Stat. §§ 337.01 to 337.05) voids construction contract clauses that make a contractor indemnify another party for that party's own negligence, even in part. Clauses limited to the contractor's own share of fault generally hold up.

What to check on a contractor COI for a Minnesota project

1. Workers' comp. Nearly every contractor with employees needs it in Minnesota. A contractor with a crew and no workers' comp on its COI is a gap. For an out-of-state contractor, confirm Minnesota is listed on the workers' comp policy.
2. General liability. A Minnesota license only shows the contractor met the state's floor. Compare each limit on the COI with your project requirements, which are usually higher.
3. Additional insured. The endorsement is a separate promise from the indemnity clause, so check both. Ask for the endorsement itself, not just a box ticked on the certificate.
4. Dates. Every policy should run through the end of the job. A COI only shows coverage on the day it was issued, so check again at each renewal.

Forsured checks every contractor COI against your project requirements, then keeps checking for the life of the project. Send us one project's requirements and a contractor COI or two for a free COI risk check.