Workers’ compensation insurance laws and requirements for employers vary from state to state, but private employers can generally choose whether to carry workers' compensation insurance coverage. A workers' compensation insurance policy provides lost wages and medical benefits to employees injured on the job—and death benefits for the spouse and dependents (children) of a worker who dies in a work-related accident.

Under workers’ compensation laws in many states employers who subscribe to workers’ compensation insurance receive a significant legal protection—they cannot be sued by an injured employee (or the estate of a deceased employee) unless the employer was grossly negligent (more negligent than simple, ordinary negligence).

In other words, if an employer has workers’ compensation insurance, that is usually the exclusive remedy for an injured employee (known as the exclusive remedy provision in the statute), and the insurance coverage bars an injured employee from suing the employer (known as the workers’ compensation bar).

An employer who does not purchase or subscribe to workers’ compensation insurance is known as a nonsubscriber. Workers’ compensation laws are usually located in a state’s statutes.

In Minnesota, workers' compensation insurance is mandatory for most employers. The state requires that any employer with one or more employees, whether full-time, part-time, seasonal, or temporary, must carry workers' compensation insurance. This insurance provides benefits to employees who are injured on the job or suffer a work-related illness, covering medical expenses, wage loss, rehabilitation costs, and death benefits. Minnesota's workers' compensation system operates under the exclusive remedy provision, meaning that for covered employers, employees generally cannot sue their employer for work-related injuries or illnesses; instead, they must seek compensation through the workers' compensation system. However, there are exceptions where an employee may sue the employer, such as in cases of intentional harm. Employers who fail to provide workers' compensation insurance may face penalties, fines, and potential lawsuits from injured employees. It's important for employers to understand their obligations under Minnesota law to ensure compliance and provide the necessary protection for their employees.