The cost of workers compensation insurance in Minnesota can vary significantly depending on the class code of the business. Workers compensation insurance is a type of insurance that provides benefits to employees who are injured on the job. In Minnesota, the cost of workers compensation insurance is determined by the Minnesota Workers Compensation Insurers Association (MWICA) and the National Council on Compensation Insurance (NCCI).
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Understanding Class Codes
Class codes are a way to categorize businesses based on their type and level of risk. Each class code has a corresponding rate, which is used to calculate the premium for workers compensation insurance. The most common class codes in Minnesota include:
- 8810: Clerical Office Employees
- 8742: Salespersons - Outside
- 8030: Dry Goods or Department Store Employees
- 5645: Carpenters
- 5022: Brick or Stone Masons
Cost of Workers Compensation Insurance in Minnesota
The cost of workers compensation insurance in Minnesota can range from $0.50 to $100 or more per $100 of payroll, depending on the class code and other factors. The following table shows some sample rates for different class codes in Minnesota:
| Class Code | Rate per $100 of Payroll |
|---|---|
| 8810: Clerical Office Employees | $0.50 - $1.50 |
| 8742: Salespersons - Outside | $1.00 - $3.00 |
| 8030: Dry Goods or Department Store Employees | $1.50 - $4.00 |
| 5645: Carpenters | $5.00 - $15.00 |
| 5022: Brick or Stone Masons | $10.00 - $30.00 |
Factors Affecting Workers Compensation Insurance Costs
Several factors can affect the cost of workers compensation insurance in Minnesota, including:
- Class code: As mentioned earlier, the class code of the business can have a significant impact on the cost of workers compensation insurance.
- Payroll: The amount of payroll for the business can also affect the cost of workers compensation insurance.
- Claims history: Businesses with a history of workers compensation claims may pay higher premiums.
- Location: The location of the business can also affect the cost of workers compensation insurance.
Conclusion
In conclusion, the cost of workers compensation insurance in Minnesota can vary significantly depending on the class code of the business. Understanding the class code system and the factors that affect workers compensation insurance costs can help businesses make informed decisions about their insurance coverage.