Minnesota's Zero Estimated Exposure Work Comp Law (2026)

Starting January 1, 2026, Minnesota changed the rules for zero estimated exposure workers' comp policies in the construction trades. The changes come from 2025 Minnesota Laws, chapter 27, article 2, and they live in three places: the definition in Minn. Stat. § 176.011, subd. 19a, the attestation rule in Minn. Stat. § 79.101, and the notice rule in Minn. Stat. § 176.185, subd. 12. If you are a sole proprietor, a subcontractor, a general contractor, or a worker who got hurt on a job where somebody had one of these policies, the changes affect you.

What a zero estimated exposure policy is

A zero estimated exposure policy is a workers' compensation policy issued to an employer that reported a total estimated exposure, meaning covered payroll, of zero. Sole proprietors and single-member LLCs buy them because a certificate of insurance is required to get hired on construction sites and other contract work.

The problem the legislature was solving is that some businesses with real employees buy zero-exposure policies to avoid the premium on a standard policy. When one of those employees gets hurt, the worker, the hiring contractor, and the insurer all end up in a fight over who pays.

The attestation

Under § 79.101, an insurer writing a zero-exposure policy for an employer performing building construction or improvement services must collect a signed attestation with the application. The statute sets the words. The applicant attests that the information on the application is true and complete, that the applicant has no employees and an estimated exposure of zero, and that if the applicant employs anyone during the policy period it will give the insurer written notice within 60 days of the hire, including estimated payroll and classification codes. The attestation also states that omissions or misrepresentations with intent to defraud are a crime under Minn. Stat. § 609.611.

This applies to policies issued or renewed on or after January 1, 2026.

The notice to hiring contractors

Under § 176.185, subd. 12, an employer performing building construction or improvement services that obtains a zero-exposure policy must give written notice to every entity it directly contracts with, stating that its total estimated exposure is zero, and must provide a copy of the policy. The entity that receives the notice must keep the notice and the policy copy for three years from the date it received them.

That record is the point. A general contractor that received the notice and the policy can show what it was told. A subcontractor that never sent it has a problem.

Wrap-up programs

The same law added Minn. Stat. § 79.102 for owner-controlled and contractor-controlled insurance programs on large projects. A contractor or subcontractor working inside an approved wrap-up program may not carry a zero-exposure policy for its work on that project.

What it means for an injured worker

If you were hurt working for a contractor who called you an independent contractor, or who was carrying a zero-exposure policy while you were on the payroll, the coverage fight is yours whether you asked for it or not. Two rules protect you. The employer stays liable for your injury whether or not it bought the right policy. And under Minn. Stat. § 176.215, a contractor that hires an uninsured subcontractor can be liable for the subcontractor's injured workers. The new attestation and notice paperwork will now be sitting in somebody's file, and it says in writing who claimed to have no employees.

Call or text me at (651) 283-8747. Uninsured-employer and misclassification claims are a large part of what I do, and the first step is finding out who held which policy on the day you were hurt.

What to do now if you hold one of these policies

If you are a sole proprietor or independent contractor in construction, confirm your insurer has your signed attestation for the current policy period, and send the written notice and a copy of the policy to everyone you contract with directly. If you hire anyone, even part-time or temporary, notify your insurer in writing within 60 days.

If you are a general contractor, keep every zero-exposure notice and policy copy you receive for three years, and treat a subcontractor with workers on your site and a zero-exposure policy as an uninsured subcontractor until proven otherwise.

Resources

• Minn. Stat. § 79.101: attestation required
• Minn. Stat. § 176.185, subd. 12: notice to contracting parties and three-year retention
• Minn. Stat. § 176.011, subd. 19a: definition
• Minn. Stat. § 176.215: liability of contractors for uninsured subcontractors
• 2025 Minnesota Laws, chapter 27: the session law
• DLI: zero estimated exposure and wrap-up policies