According to an annual analysis of state workers’ compensation rates, Minnesota ranks as the highest Midwest state for workers’ comp insurance rates.

The study, conducted by the Oregon Department of Consumer and Business Services, found that in 2010 Minnesota employers paid $2.27 per $100 of payroll for workers’ comp. That’s the 16th highest in the nation, and the highest of all neighboring Midwestern states. Listed below are the rates for nearby states.

  • Wisconsin — $2.21
  • South Dakota — $2.02
  • Iowa — $1.82
  • North Dakota — $1.02

So what makes Minnesota’s rates so high?

Minnesota employers are required to compensate injured workers. Most businesses do this by purchasing insurance policies which are generally more costly than neighboring states.

The report did stress however, that these numbers represent indexes not averages, because the analysts needed an standard way to compare states to one another.


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