Alert: New Disclosure Rules For Zero Estimated Exposure Policies Take Effect January 1, 2026

Starting January 1, 2026, contractors using or hiring subcontractors with “zero estimated exposure” workers’ compensation policies will face new disclosure and recordkeeping requirements.

A zero estimated exposure policy—sometimes called an “if-any policy”—is a workers’ compensation policy issued when an employer reports no employees and no anticipated payroll. These policies are a valuable tool for small contractors. They ensure compliance with Minnesota’s workers’ compensation laws and, most importantly, provide legal protection if a claim is made for coverage of a worker who is not an employee but is injured on a jobsite. They also help upstream contractors confirm that subs are not misclassifying workers as independent contractors.

What’s Changing

Beginning in 2026, an employer who purchases a zero estimated exposure policy must notify, in writing, every entity it contracts with to provide building construction or improvement services that the employer holds such a policy. The employer must also provide a copy of the policy itself. The required notice is usually made on the ACORD coverage summary, so contractors should confirm with their insurers that this disclosure is included.

Contractors hiring subcontractors with a zero estimated exposure policy will be entitled to receive both the written notice and a copy of the policy, and must retain those documents for three years. The state’s online workers’ compensation insurance lookup tool will also begin showing when a policy is written with zero estimated payroll, providing an additional layer of transparency.

Why It Matters

These changes were enacted in the 2025 Minnesota Session Laws, Chapter 27 (H.F. 3228). MNCLS attorney Bill Gschwind, who serves on the Workers’ Compensation Advisory Council that reviews all work comp legislation before it reaches the Legislature, was directly involved in crafting this policy. His role helped ensure that zero estimated exposure policies remain a practical option for small contractors while adding reasonable disclosure safeguards.

Next Steps

If you hold a zero estimated exposure policy, make sure you have procedures in place to provide written notice and copies of the policy to anyone you contract with for construction services starting January 1, 2026. Verify with your insurer that the ACORD summary you provide to contractors includes this required disclosure. If you hire subcontractors, be prepared to request, receive, and retain those documents for three years.

For guidance on how these changes may affect your business—or to discuss whether a zero estimated exposure policy is the right choice for you—contact Minnesota Construction Law Services. Our team can help you stay compliant while continuing to use this tool to protect your business.