Minneapolis is such a busy place with so many different jobs; there’s also a higher chance someone, somewhere, is cutting corners. One of the corners employers try to cut, often quietly, is workers’ compensation insurance. Maybe they think they won’t get caught. Maybe they don’t think anyone will get injured. Maybe they just don’t want to deal with the costs or paperwork.
But if you’re injured at work in Minneapolis and your employer doesn’t have insurance, you’re the one who gets stuck in a mess. That’s why people in your situation often end up calling a Minneapolis workers’ comp attorney, because the process gets complicated fast, and you need someone who knows what to do next.
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Workers’ Comp Isn’t Optional in Minnesota
Minnesota law says, very clearly, that if you run a business and have even one part-time employee, you must carry workers’ compensation insurance. This law is written into Minnesota Statutes, section 176.181, subdivision 2.
This insurance is required because it acts like a safety net for when things go wrong. If you get hurt on the job, it helps pay for your medical bills and gives you money to make up for lost wages. It doesn’t matter if the accident was your fault, your boss’s fault, or nobody’s fault.
It’s a no-fault system. That’s how the state makes sure workers don’t get left behind when they can’t work due to a job-related injury.
What if They Have No Insurance
If your employer didn’t have insurance, you’re allowed to sue them. Normally, employers can’t be sued for work injuries; that’s the trade-off of the workers’ comp system. But when they break the rules and don’t carry insurance, that protection disappears. You can file a personal injury lawsuit against them for full damages, not just medical bills and lost wages, but also pain and suffering, emotional distress, and more.
And they can’t use the usual defenses that most businesses can in a lawsuit. The law says they have to prove you were being reckless or willfully negligent, which is a tough standard to meet.
Furthermore, Minnesota knew that some employers would try to avoid getting insurance. That’s why they created the Special Compensation Fund, the SCF. It’s a backup system that exists for situations exactly like this.
If your employer is uninsured and you’re injured on the job, you can file a claim with the SCF. This fund will cover medical costs, lost wages, rehab if needed, and even permanent disability payments. If the injury is fatal, it can pay out death benefits to your family.
Your case is reviewed by a workers’ comp judge who decides if your employer is legally responsible for your injury. If the answer is yes, the SCF pays you what you’re owed, and then turns around and slaps your employer with a penalty and a bill; they owe the fund back 100% of what it paid you, plus a 65% penalty.
What You Should Do If You Suspect Your Employer Doesn’t Have Insurance
You don’t have to wait to be injured to verify if your employer has insurance or not. If you as much as have doubts about them having insurance, here’s what you can do:
- Check the workplace posting: Minnesota law requires every employer to post a Workers’ Compensation Employee Rights notice in a spot everyone can see, usually near the breakroom or entrance. If it’s not there, that’s a red flag.
- Look it up yourself: The MN Department of Labor & Industry (DLI) has a free online tool to verify whether your employer has insurance. You don’t need to ask your boss, just search.
If you find out there’s no coverage, you should talk to someone right away. Because if you ever get injured, you’ll want to already know your rights and who to call.