Workers’ Compensation Coverage for Financial Firms in Minnesota
Having workplace liability insurance is important for all companies in Minnesota. This includes financial firms, even if they are unlikely to have many workplace accidents among their employees.
Workers’ Compensation is mandatory for the vast majority of businesses in Minnesota, and there are no exceptions for financial firms. When such companies do not adhere to insurance coverage requirements, they can be sued by injured employees. Non-compliant financial firms might also be financially punished by the Department of Labor and Industry in Minnesota. Because financial firms may not be at risk of seeing frequent workplace accidents, insurance premiums for such companies might be low. Compared to the cost of a lawsuit or financial penalties, procuring Workers’ Compensation is a welcome expense for most financial firms.
If you need coverage for your company now, reach out to our Minnesota Workers’ Compensation insurance brokers by calling NPN Brokers at (866) 340-9120.
Minnesota’s Workers’ Compensation Requirements for Financial Firms
Like many states, Minnesota is strict regarding Workers’ Compensation requirements. Because of this, most companies, including those that are low-risk, must have workplace liability insurance.
According to Minn. Stat. § 176.021(1), all employers, even those with just one part-time worker, need to have Workers’ Compensation in Minnesota. This statute applies to businesses that have an inherently lower risk of workplace accidents taking place, such as financial firms. Your company’s Workers’ Compensation policy must cover all workers so that they can recover benefits in case they are injured at work.
Although accidents in financial firms may be infrequent, they can happen. Common causes of office workplace accidents include slip and falls and defective products. Inadequate lighting or open desk drawers can cause employees of financial firms to trip, resulting in sprains or fractures. Repetitive motion injuries or back injuries are also common among employees who work at desks day in and day out. Though injuries sustained by employees of financial firms might be somewhat minor, they may still require Workers’ Compensation benefits, which is why financial firms need coverage in Minnesota.
Can Financial Firms Be Sued if They Do Not Have Workers’ Compensation in Minnesota?
One of the top reasons financial firms should get Workers’ Compensation, apart from protecting their employees, is to avoid civil litigation from employees in the event of an accident at work in Minnesota. If your company does not have workplace liability insurance, and an employee is injured, they can sue your company for compensatory damages.
Workers’ Compensation is the exclusive remedy for injured employees in Minnesota, provided employers have the proper insurance. When financial firms do not have the necessary coverage, one of two things might happen.
First, the injured employee can request benefits from the Special Compensation Fund. When this happens, a compensation judge will determine if an employer is liable for the worker’s injuries. Depending on the judgment, the Special Compensation Fund may pay benefits to the injured worker. These funds must be reimbursed by the uncovered employer. Additionally, the employer might be given a penalty of 65% of the benefits given to the injured worker.
Second, the injured employee can file a lawsuit. This is not an option when a financial firm has Workers’ Compensation. Although more time-consuming, employees might choose to sue their employers, as doing so could result in greater compensation than what might have been available from the Special Compensation Fund in Minnesota.
Workers’ Compensation Penalties for Non-Compliant Financial Firms in Minnesota
In addition to the penalty of 65% of an injured worker’s benefits, financial firms might be further penalized for not having a Workers’ Compensation policy in place in Minnesota.
Financial firms might be fined if discovered to be without Workers’ Compensation in Minnesota. This can happen even if a workplace accident does not take place. The Department of Labor and Industry can impose fines of $1,000 per employee for each week that a financial firm was uninsured. Financial firms cannot hire workers during this time or operate in any capacity until coverage is acquired.
Financial firms have ten days to comply and obtain coverage after being found non-compliant. Financial firms might be further penalized if they do not get coverage quickly enough. Fortunately, our Workers’ Compensation insurance brokers can get you a quote within a day, allowing you to provide coverage for your employees and adhere to the requirements set by the Department of Labor and Industry.
Finding Workers’ Compensation Coverage for a Financial Firm in Minnesota
Securing Workers’ Compensation is mandatory for most financial firms in Minnesota. Though self-insuring is a possibility, policies are often obtained from private workplace liability insurance carriers.
Although Minnesota allows companies to self-insure in certain situations, doing so is a big financial risk. If your company self-insures, it will have to process claims and pay benefits to injured employees itself. Some financial firms might choose to do this because the chances of workplace accidents are so low. While that is understandable, self-insuring does not provide the same security as obtaining Workers’ Compensation from a private carrier does.
Procuring Workers’ Compensation from a private carrier can be easier for companies in low-risk industries, like financial firms. Your initial premiums for Workers’ Compensation might be low because there is a reduced risk of severe workplace accidents and injuries.
In Minnesota, policies for Workers’ Compensation are priced based on risk factors. A business’s industry, as well as its claims history, will factor into the cost. If your company’s risk factors are few, then its insurance premiums may not be expensive. Paying a monthly premium to your carrier can give you peace of mind and allow you to rely on your carrier when processing claims and handling the aftermath of an on-the-job accident in Minnesota.
Call Our Brokers to Get Workers’ Comp in Minnesota
When you call our Workers’ Compensation insurance brokers at (866) 340-9120, you can get a policy quote from NPN Brokers.
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