Workers compensation is a system that provides benefits to workers who are injured on the job. The workers' compensation system has been enacted in all 50 states, including Minnesota, but it varies from state to state. Workers' comp was created to guarantee that employees who sustain injuries on-the-job would be eligible to receive monetary compensation. Injured employees can receive the benefits without the need to litigate a claim against their employers.
Under Section 176.181 subdivision 2 of Minnesota Statutes, purchasing workers ' compensation insurance is a requirement for most business entities, except for those who do not have any employees or are otherwise excluded. The purpose of workers' compensation in Minnesota is to provide benefits to employees who have work-related injuries and illnesses.