Small Business Insurance Minnesota

You can save with discounts of up to 25%*

Small companies account for almost all businesses in Minnesota and employ nearly half of the state’s labor force.1  One thing that many of them have in common is small business insurance.

Business insurance in Minnesota offers essential protection for your company’s bottom line and the wellbeing of your employees. It can provide a financial safety net that helps pay expenses after unexpected events, such as:

  • A non-employee claims you caused injury or property damage
  • Someone says you were professionally negligent
  • Your business property is damaged or destroyed
  • A worker suffers an on-the-job injury
  • You or an employee has an accident while driving for business

NEXT is 100% dedicated to small business and insures more than 1,300 types of small businesses and self-employed workers. We make it easy for you to get the right coverage at the right price and purchase your policy online in less than 10 minutes.

Continue reading to learn about important types of business insurance in Minnesota. Or get a free instant quote today to see customized coverage options for your business.

Small business insurance in Minnesota

Minnesota business insurance typically comes in customized packages with several different types of coverage, which insurance carriers call policies. Each type of coverage can provide assistance when different types of accidents happen.

For example, general liability insurance can help protect against financial losses if you’re accused of causing physical injury to a non-employee or damaging their property. Whereas, if one of your employees gets hurt on the job, you would need workers’ compensation coverage.

Other types of business insurance coverage purchased in the state of Minnesota include professional liability coverage, commercial auto insurance and business property insurance.

Whether you’ll want some or all of these types of coverage will depend on your business operations. Every small business is unique and has different business insurance needs. For example, a Duluth construction company probably requires more policies than an Edina accountant.

business insurance lp img1

More about types of Minnesota business insurance

It’s common for small businesses in Minnesota to need multiple types of coverage. Below you can learn more about the different kinds of insurance available to meet your business insurance needs.
General Liability
Minnesota General Liability insurance

General liability coverage, which insurance companies call a business liability policy, is often the first type of insurance purchased by small businesses.

If a non-employee claims that your business caused bodily injury or property damage, general liability insurance can help pay for medical costs and to repair or replace items damaged. It can also help cover attorney fees, court costs and settlements in the event of a lawsuit.

A small business owner might need to file a general liability claim in the following scenario:

Someone accuses a small grocery store in Minneapolis of negligence after falling on a wet floor and spraining a shoulder. General liability insurance could help the store pay the customer’s medical bills and legal costs if they sued.

Construction and cleaning companies may want an optional general liability add-on called tools and equipment insurance. This can help pay to replace or repair business gear that’s lost, damaged or stolen outside of wear and tear.

Workers Compensation
Workers’ Compensation insurance

Minnesota state law requires most businesses with employees to carry Minnesota workers’ comp insurance. This kind of coverage is designed to help pay for medical care and lost wages for employees who get hurt on the job.

For instance, a kitchen employee of an Eagan-based restaurant suffers a serious burn, seeks medical attention and needs a month out of work to get better. Workers’ comp coverage could help the business owner pay for the employee’s medical bills and cover a portion of their lost wages.

Commercial Auto
Commercial Auto insurance

Businesses insurance in Minnesota frequently includes commercial auto coverage, which provides protection for accidents that happen while driving for business. It’s important because personal auto policies won’t cover damages if you’re behind the wheel for work.

For example, a shuttle driver at a small St. Paul hotel accidentally hits a barrier while driving to the airport, injuring several passengers. Commercial auto insurance could help the hotel pay for the guests’ medical bills and to repair their vehicle.

Businesses that ask employees to rent vehicles or drive their own automobiles for work will want an optional add-on called hired and non-owned auto insurance. This type of coverage can help cover accidents in vehicles not titled to your business.

Commercial Property
Commercial Property insurance

Minnesota commercial property insurance can help pay for damaged or destroyed business property after a covered event, such as water, fire or wind damage.

For example, a sprinkler malfunction at a Minneapolis real estate agency damages the office, ruining a computer, printer and furniture. Commercial property coverage could help pay to clean up the mess and replace the damaged business equipment.

Errors & Omissions
Professional Liability (E&O) insurance

If someone says that your company made a mistake, failed to deliver on a contract or missed an important deadline that caused financial loss, you could face a lawsuit.

That’s why many small business insurance packages in Minnesota include professional liability coverage, which is also called E&O or errors and omissions insurance. This kind of coverage can help your company pay for the cost of the mistake and help cover attorney fees, court costs and settlements if you’re sued.

For example, a client says that a Rochester event planning company failed to book the right conference room for an important meeting, which ruined a business pitch. Professional liability insurance could help the event planners pay a settlement to the client.

How much does business insurance in Minnesota cost?

How much does business insurance in Minnesota cost?

The cost of business insurance can vary significantly based on your business operations. Keep in mind that the following factors will influence the cost of your Minnesota business insurance.

Your industry

The hazards of your profession affect how much your company will pay for coverage. For example, a construction company in Mankato, whose work involves the risk of injuries or property damage, will pay more for coverage than a desk-based professional services worker in St. Cloud.

The policies and coverage you select

As you add different types of coverage to your insurance package, the price you pay will increase. You will also pay more if you choose higher policy limits (which provide more protection) for your coverage, as opposed to the minimum policy requirements.

Number of employees

Most states determine workers’ compensation insurance costs based on the amount of workers on your payroll. Providing up-to-date employee numbers for your insurance quote is the best way to get an accurate price.

The best way to explore coverage options and find out how much you’ll pay for a business insurance policy is to get a free instant quote from NEXT.

You can also use our insurance calculators for a general estimate of insurance costs in Minnesota:

General liability calculator

Professional liability calculator

Workers’ compensation calculator

Commercial property calculator

How NEXT can help you with business insurance in Minnesota

How NEXT can help you with business insurance in Minnesota

We offer a fast and easy way for small business owners to get a business insurance quote online, purchase coverage and instantly share a certificate of insurance. The entire process usually takes less than 10 minutes.

You can also chat with our U.S.–based NEXT licensed insurance agents if you need help or have questions.

Resources for Minnesota small businesses and self-employed workers

See what our customers have to say

I am so excited
I am totally excited about my new insurance for my small business. I am happy that the price was in a range that I can afford, the terms were easy to understand and it was so simple to purchase my first policy. I look forward to doing business with you in the future.
Curzella J.
Easiest insurance purchase – EVER!
I was looking around trying to compare insurance and I am so lucky I found NEXT. I was able to compare levels of coverage, and all the options, without pressure from a salesperson or time limits. I was able to check out prices and it was more coverage for less than the “traditional” company I looked at.
Michael W.
Happy small business owner!
I needed liability insurance for my new small business brick & mortar location. I got the run around from another company, but NEXT provided a competitive insurance quote in a timely manner. I now have the insurance that I need and it was stress-free!
Nicole E.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
What we cover
Chat with Us

Mon – Fri | 8 a.m. – 5 p.m. CT

© 2024 Next Insurance, Inc. 975 California Ave, Palo Alto, CA 94304, United States
Better Business Bureau
Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.