Sources reviewed October 27, 2026 · Confirm current rules with the agency
When coverage is required
Montana employers must cover employees under the state's workers' comp and job-related illness laws. You can buy a policy from a licensed insurer, or apply to self-insure if your business is financially strong enough. Look at the real working setup and any exceptions in the law before you decide a worker does not need coverage.
Owners, contractors, and exceptions
If you hire people who say they are self-employed, pay attention to Montana's Independent Contractor Exemption Certificate. A contractor can carry their own coverage instead, but the working relationship still has to be truly independent. Check the certificate with the Department of Labor and Industry and keep it with the contract. A business license or tax form is not the same as an exemption certificate.
If an employee is injured
Have workers report an injury quickly, even if they do not need treatment at first. Send the details to your insurer and use the Department's First Report of Injury process. Write down both the date of the injury and the date you learned about it. Then send medical and time-off updates. Ask your insurer to confirm the filing deadline and whether any other reports are needed.
Operating without coverage
An uninsured Montana employer must pay 100% of an injured worker's medical and lost-wage benefits and can also be sued. If the Uninsured Employers' Fund pays benefits, the state collects that money back from you as a penalty. You may also be charged double the premium you should have paid, with a $200 minimum.
How to arrange coverage
Buy a policy from a licensed insurer or get approval to self-insure, and get the worker notice from your insurer. Montana requires this notice at every work site. List all your operations and worker setups on the application. Confirm how traveling crews and subcontractors are covered before a project starts. Post a current claims contact next to your coverage notice.
Benefits and return-to-work planning
A work injury can lead to medical care, time off work, a lasting disability, or benefits for family members if a worker dies. Who qualifies, waiting periods, how wages are figured, and benefit limits all depend on state law and the facts of the claim. Ask your insurer which benefits it is looking at and what records it needs. Go by the doctor's work limits, not your own guess about what the worker can do. If you can offer lighter work, describe the duties and hours clearly and plan it with the doctor and your insurer.
Preparing an accurate cost estimate
Gather payroll by job and location, a description of each type of work, details on working owners, subcontractor records, and your past claims. Ask the insurer to confirm your job classes, how the rate is figured, any experience modifier, the minimum premium, fees, and audit terms. This site's calculator uses a base rate that you enter. It does not give a state-approved rate or a real quote. Compare offers using the same numbers, and track staff and work changes during the year so the final audit is easier.
Forms, posters, and notices
These links go straight to Montana’s official forms. Your insurer can often send a poster with your policy details already filled in.
Weekly benefit limits
These limits cap the wage replacement checks an injured worker can get. Medical care is paid separately. Limits change every year, so check the source for the latest figures.
- Maximum
- $1,192 a week
- Applies to
- Temporary total disability, July 1, 2026 to June 30, 2027
Check a contractor’s coverage
If a worker says they are self-employed, ask for their Independent Contractor Exemption Certificate and confirm it with the Department of Labor and Industry.
Owner exemptions and elections
Montana issues an Independent Contractor Exemption Certificate to people who work for themselves. The certificate does not change how employees must be covered.
Frequently asked questions
Is workers' comp required in Montana?
Yes for employers with employees covered by Montana's workers' compensation law.
Do business owners need workers' comp in Montana?
Independent contractors need an Independent Contractor Exemption Certificate or their own coverage. Business registration alone is not enough.
How long does an employee have to report a work injury in Montana?
Employees should report injuries quickly. The employer uses the Department's First Report of Injury process through its insurer.
What happens if a Montana business doesn't have workers' comp?
Uninsured employers pay 100% of the injured worker's benefits and can be charged double the premium they should have paid (minimum $200).
How do I get workers' comp insurance in Montana?
Buy from a licensed insurer or qualify to self-insure, and post the insurer's notice at each worksite.
How much does workers' comp cost in Montana?
Cost depends mostly on your job class codes, the payroll in each class, your experience modifier, and the insurer's rates and minimum premium. Ask a licensed insurer or agent for the base rate for your class code in Montana, then use this site's calculator for a rough estimate. Your final premium is set at the yearly audit.
Your next steps
Official sources & further reading
Montana DLI: insurance complianceMontana DLI: independent contractorsMontana DLI: notices and insurance reportingMontana DLI: benefits summaryMontana DLI: Uninsured Employers' Fund and penaltiesThis summary is for learning, not legal advice. Exceptions and changes may apply. If anything here differs from the official agency or the law, they are what count.