MWCIA Assigned Risk Plan:
Workers Comp When No One Else Will Write You

The Minnesota Workers Compensation Assigned Risk Plan (MWCARP) was created by the Minnesota Legislature to ensure that all Minnesota employers can obtain workers compensation coverage as required by state law. It is administered by the Minnesota Workers Compensation Insurers Association (MWCIA) — a non-profit data service organization licensed by the Minnesota Department of Commerce.

MWCIA itself is not the insurer. When an employer applies to MWCARP, the application is assigned to a voluntary market carrier (a MWCIA member insurer) that services the policy. The assigned carrier handles claims and policy administration, but the risk is shared across the pool of participating insurers. MWCIA administers the assignment process, rate filings, and statistical reporting.

Minnesota law requires every employer with employees to carry workers compensation insurance. The MWCARP exists specifically because some employers — due to their industry, claims history, or other risk factors — cannot obtain coverage from any voluntary market carrier. The plan ensures compliance with the legal mandate.

Employers end up in MWCIA Assigned Risk when voluntary market carriers decline to write their workers compensation coverage. Common reasons include:

• High-hazard classification — industries with elevated injury rates (roofing, logging, demolition, certain manufacturing) that voluntary carriers have stopped writing in Minnesota.
• Poor loss history — significant workers comp claims, especially if the frequency or severity suggests inadequate safety practices.
• Experience modification factor above threshold — a high experience mod signals elevated risk to voluntary carriers.
• New business with no loss history — some voluntary carriers won't write new businesses without established track records, particularly in higher-hazard classes.
• Size or payroll profile — very small employers in high-hazard classes may find limited voluntary market options.

Applications are submitted electronically through MWCIA's Online Assigned Risk (OAR) system. The application is assigned to a servicing carrier and coverage is bound at 12:01 AM the day following receipt of a complete application.

MWCARP policies provide the same workers compensation and employers' liability coverage as voluntary market policies — the coverage forms are identical. Employers in the assigned risk pool are not penalized with inferior coverage; they receive:

• Part I — Workers Compensation: Statutory benefits as required by Minnesota law — medical treatment, wage replacement, permanent disability, and death benefits for injured employees.
• Part II — Employers' Liability: Coverage for employer liability arising from work-related injuries, including defense costs. Standard limits apply.
• All-states coverage: Available for employers with employees working in multiple states.

MWCARP uses the same classification rates and experience modification factors as the voluntary market — the base rating structure is identical. However, because premium discounts and dividends are unavailable, the net cost is almost always higher than what a voluntary market carrier would charge a comparable account that qualifies for discounts.

Experience modifications calculated by MWCIA apply equally in the assigned risk plan and the voluntary market. An improving experience mod benefits an employer in either market — and is one of the primary tools for reducing assigned risk premiums and eventually qualifying for voluntary market placement.

The minimum premium applies and is subject to adjustment at final audit after policy expiration. Payment is made to the assigned risk plan, not through the agent.

The path back to the voluntary market is primarily about demonstrating improved risk quality:

• Reduce claims frequency and severity — implement workplace safety programs, document training, and reduce the incident rate. This directly improves the experience modification factor over 3 years.
• Improve your experience mod — the experience modification factor is the single most important number in voluntary market workers comp underwriting. Getting it below 1.0 opens voluntary market doors; getting it significantly below 1.0 unlocks better pricing.
• Time and a clean record — for employers whose primary barrier was industry classification or new business status, building a clean claims history over time is the remedy.
• Work with Options Insurance — we shop your risk with our carrier partners at each renewal. When voluntary market options become available, we present them clearly so you can make an informed decision about leaving the plan.