Workers’ Comp Montana

Table of Contents

• Is Montana Workers’ Compensation insurance required?
• How does Workers’ Comp work in Montana?
• How much is Montana Workers’ Comp?
• What if you don’t have Workers’ Compensation in Montana?
• Who is exempt from Montana Workers’ Compensation insurance?
• How NEXT helps Montana small business owners

Is Montana Workers’ Compensation insurance required?

Montana state law requires workers’ compensation insurance coverage for almost all Montana employers with one or more employees. Employees include:

• Minors
• Aliens
• Paid public officers
• Officers and members of boards of directors
• Contractors (other than independent contractors)

Workers comp insurance can help cover the costs from a work-related injury or accident. A Montana workers’ compensation policy includes benefits to cover things like:

• Medical bills
• Emergency treatment
• Vocational rehabilitation
• Lost wages

How does Workers’ Comp work in Montana?

Montana employees can be compensated with many workers compensation insurance benefits. If they become injured in the course of their work or develop an occupational disease, they can expect help with the cost of:

• Medical, hospital and related services.
• Reasonable travel expenses to seek medical care.
• Vocational rehabilitation to aid in recovery.
• Wage replacement due to temporary or permanent disability.
• Survivor benefits in the event of an employee’s death.

Montana has four categories of workers’ compensation income benefits:

Temporary total disability. For employees who suffer a total loss of wages for an extended period due to their injury or disease.

Permanent partial disability. For employees who are partially disabled by an injury or disease, which results in a wage loss.

Permanent total disability. For employees who cannot return to regular employment due to their injury or disease.

Death benefits may be paid to the employee’s beneficiary if they die as a result of a work-related injury or illness. Reasonable burial expenses up to $10,000 can also be covered.

Montana employers must report employee injuries to their insurer in a timely manner. They must also post a notice in the workplace that describes employees’ workers’ compensation coverage and rights.

Workers’ compensation policies protect Montana residents who temporarily work out of state. However, employers who have employees regularly working outside the state may need to get coverage in another state depending on the host state’s laws.

In some situations, non-residents who primarily work in Montana can be covered by a Montana workers’ compensation insurance policy. Employers who are unsure of whether their coverage extends to these employees should contact the Employment Relations Division of the Montana Department of Labor and Industry.

Learn more about workers’ compensation coverage.

How much is Montana Workers’ Comp?

Workers’ compensation costs vary across industries. Factors that influence price include:

• The number of employees and the type of work they do
• Your total payroll
• Your insurance claims history
• The locations where you do business

The best way to determine the insurance rate for your business is to get a free instant quote from NEXT.

What if you don’t have Workers’ Compensation in Montana?

The state of Montana penalizes employers who do not obtain required workers’ compensation coverage.

Uninsured employers may be fined $200 or twice the amount of the premium that they should have paid on the past three-year payroll while uninsured, whichever is greater.

Who is exempt from Montana Workers’ Compensation insurance?

Montana employers are not required to provide workers’ compensation insurance for some employees, including:

• Household or domestic employees.
• Some family members.
• People performing services for aid or sustenance only.
• Real estate, securities and insurance salespeople paid solely by commission.

Some employers don’t have to obtain workers’ comp coverage for themselves, including:

• Sole proprietors
• Partners in partnerships
• Members of limited liability corporations ( LLCs)
• Corporate officers

All independent contractors in Montana must choose one of the following workers’ compensation options:

• Obtain coverage with a self-elected workers’ compensation insurance policy.
• Obtain an Independent Contractor Exemption Certificate (ICEC).

An ICEC allows an independent contractor to waive coverage for themselves. Fines of up to $1,000 may be assessed if an uninsured independent contractor is found to be working without an ICEC.

Montana also offers a self-insurance option for workers’ compensation. Employers must seek approval from the Montana Department of Labor and Industry to self-insure.

The department only grants permission if the employer can demonstrate their financial ability to cover all workers’ comp benefits.

Applications must include audited financial statements (or reviewed statements, if audits are not normally prepared) as well as actuary reports.

In the case of any of these exceptions, employers can still voluntarily provide coverage. Consider coverage to help pay for unexpected medical expenses and lost wages in the event that you or your employees get hurt on the job.

How NEXT helps Montana small business owners

NEXT offers an easy way to get a free workers’ compensation insurance quote, purchase coverage and instantly share a certificate of insurance in about 10 minutes.

NEXT strives to resolve every claim quickly. Learn more about our claims process and how our claims advocates will work with you after an employee injury.
Start a free instant quote with NEXT.

• What to do when an employee is injured at work
• Does a sole proprietor need Workers’ Compensation insurance?
• How to file a Workers’ Comp claim
• What is a Workers’ Compensation audit?
• How Does a Workers’ Comp Claim Affect the Employer?
• What is a monopolistic state for Workers’ Comp?
• What is a Workers’ Comp exemption?