How many companies can join together to apply for self-insured status for Workers' Compensation Coverage?

In Minnesota, a self-insured status for Workers' Compensation coverage typically requires that an employer demonstrates the financial ability to fulfill its obligations for workers' compensation claims. The correct answer indicates that only one company is permitted to apply for self-insured status.

Each employer must meet specific qualifications, including but not limited to financial strength and the ability to manage claims independently. This structure is in place to ensure that the company applying for self-insurance can cover the costs associated with potential worker injuries or illnesses, thus protecting both the employees and the integrity of the Workers' Compensation system.

While some arrangements allow for groups of employers to self-insure under certain conditions, those involve “self-insured groups” that must comply with their own set of regulations. However, when discussing a singular employer applying for self-insured status, the principle stands that individual companies must ensure they meet all criteria independently, emphasizing the importance of each company's capacity to handle its own workers' compensation liabilities.