If you run a business in Montana whether it’s a coffee shop in Bozeman or a roofing crew in Billings—you’re required to carry workers’ comp. Under state law, nearly every employer must have coverage. Missing even one requirement could lead legal trouble.
This guide breaks down who needs coverage, what it includes, how much it costs, and how to handle a claim under Montana Workers’ Comp Insurance.
Who Must Carry Coverage in Montana?
Montana law requires nearly all businesses to provide workers’ comp. This includes full-time, part-time, and seasonal staff. The law falls under Workers’ Comp Requirements Montana, specifically MCA Title 39, Chapter 71.
Employers can choose from three coverage options:
- Plan 1: Self-insurance for financially qualified businesses
- Plan 2: Private insurers licensed in Montana
- Plan 3: The Montana State Fund (insurer of last resort)
Exemptions exist but must be documented:
- Independent contractors: Must have a valid Independent Contractor Exemption Certificate (ICEC)
- Casual workers: Exempt if not involved in your regular business operations
- Domestic workers: Typically excluded unless you opt in voluntarily
If you operate in construction, extra rules apply. All contractors and subcontractors must be covered—even solo operators. Out-of-state firms working locally must follow Montana rules to avoid shutdowns and Montana Workers’ Comp Penalties.
What the Insurance Covers
Montana Workers’ Comp Insurance protects both the business and employees if someone is injured on the job. Here’s what’s included:
- Medical care: Hospital visits, surgeries, therapy, and medication
- Temporary Disability (TTD): Wage replacement during recovery
- Permanent Disability (PPD): Support for long-term impairments
- Death Benefits: Assistance for dependents and funeral expenses
- Vocational Rehab: Job retraining if returning to the same work isn’t possible
Some key rules:
- – Wage benefits start after a 4-day waiting period (32 hours for shift workers), whichever is less. Montana is the only state with a 4-day waiting period – most other states have 3-day waiting periods.
- – Mental-only claims (stress or trauma with no physical injury) are specifically excluded from coverage under Montana law.
If you’re a small business owner, these policies provide critical support. Workers’ Compensation for Small Businesses Montana is not just a requirement—it’s protection from sudden financial loss.
Want a simple breakdown of how workers’ comp works? Read our guide: Workers’ Comp Insurance Basics – What You Should Know.
Common Claims in Montana
Montana Work Injury Claims span a wide range of industries. But some claims appear more than others, especially in sectors like healthcare, education, construction, and retail.
Most frequent incidents include:
- Lifting injuries in hospitals and nursing homes
- Slips and falls during icy winters in store aisles or entryways
- Tool-related injuries on job sites from Missoula to Great Falls
- Cuts and punctures from classroom tools in school systems
In Montana, the average claim includes medical and wage-loss payments and typically lasts longer in industries involving heavy labor.
Montana Workers’ Comp Rates 2025
Workers’ compensation costs in Montana vary significantly based on industry classification, payroll size, claims history, and safety record. Contact licensed agents for accurate quotes specific to your business. But your premium can be much higher or lower depending on:
- Industry risk (construction vs. clerical work)
- Company size and payroll volume
- Claims history (fewer claims = better rates)
- Safety programs and training
- Choice of coverage plan (Plan 1, 2, or 3)
If you’re unsure where you stand, getting a quote is the best step. Using tools like our calculator helps you predict your actual Montana Workers’ Comp Rates 2025.
The Montana Workers’ Comp Claim Process
If an injury happens, you must act quickly to stay compliant and avoid penalties. The Montana Workers’ Comp Claim Process is strict:
- Employees must notify their employer within 30 days of the injury, and then Montana law requires employers to file a First Report of Injury (FROI) form within 6 days of being notified by the injured worker.
- Medical care begins (from a doctor chosen by the employee or approved by insurer)
- Claim filed by the insurer using a First Report of Injury (FROI)
- Wage benefits calculated based on pay records and medical info
- Disputes handled via mediation or hearings under Montana DLI
Delays can result in Montana Workers’ Comp Penalties, including fines or even civil action. Always follow timelines closely to avoid extra costs.
What Employers Should Do Next
If you’re hiring in Montana, don’t wait for an accident to test your coverage. Here’s what every employer should do now:
- Verify your compliance using a licensed advisor
- Evaluate which plan type best suits your needs
- Prepare for 2025 pricing shifts with an updated quote
- Keep clean records to defend against audits or disputes
Need help calculating your exact rate or determining your compliance status?
Call us now at 855-718-7552 to speak with a licensed expert.
