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Montana workers' compensation insurance: Your guide to requirements and getting a policy
If you’re a Montana employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
Workers’ compensation insurance plays a critical role in protecting both sides of the workforce. For employees, it ensures access to medical care and income support after a job-related injury or illness. For employers, it provides protection from lawsuits, government fines, and the financial risks that come with workplace injuries.
Under Montana law, any business with at least one employee including full-time, part-time, seasonal, or occasional workers—is required to maintain a workers’ compensation policy.
Yes. The Montana Code Annotated (2023) outlines several categories of workers who are exempt from this requirement. These include:
Domestic workers and household help
Casual laborers
Family members employed by a relative
Commission-based sales professionals in real estate, insurance, or securities
Railroad workers in interstate commerce (excluding construction roles)
Amateur sports officials
Freelance writers or correspondents
Newspaper carriers
Independent barbers and cosmetologists
Independent contractors and sole proprietors
Members of a partnership or LLC actively working in the business
Ministers and religious order members
Volunteers
Truck drivers under contract with freight brokers
The full exemption list is available on the Montana Department of Labor and Industry website.
Medical Treatment
Injured workers are entitled to necessary medical care, including physician visits, hospital services, prescriptions, and approved travel costs. Benefits typically last up to five years from the date of injury or diagnosis.
Wage Replacement
If an employee cannot work due to a covered condition, they may receive wage loss benefits. Payments begin after four days of missed work unless the employee is out for more than 21 days, in which case the first four days are paid retroactively.
Permanent Partial Disability (PPD)
Employees who reach Maximum Medical Improvement but remain partially disabled may qualify for ongoing benefits based on their level of impairment.
Permanent Total Disability (PTD)
If an employee is permanently unable to return to work, PTD benefits may be available until the worker reaches Social Security retirement age. These benefits may be adjusted if the worker is also receiving Social Security.
Rehabilitation Services
Employees who can’t return to their previous role may receive physical therapy, occupational therapy, or chiropractic care as part of their rehab plan.
Death Benefits
Dependents of a worker who dies due to a workplace incident may receive up to 500 weeks of wage benefits, plus up to $10,000 in funeral and burial expenses.
Employers can buy workers’ comp coverage through any authorized insurance carrier or directly from the Montana State Fund. Larger companies with strong financials may apply for self-insurance by submitting an application and demonstrating the ability to cover potential claims independently.
Failing to maintain the required insurance can result in steep penalties. Businesses may face a fine of double the premium owed, with a minimum penalty of $200. They may also be required to reimburse the Uninsured Employers’ Fund for any costs incurred on behalf of an injured worker.
Workers must notify their employer of any injury, even if they don’t seek treatment. If medical care is received, they have 30 days to report the incident in writing, including the time, location, and nature of the injury.
Next, the employee must submit a First Report of Injury (FROI) to the employer or directly to the Montana Department of Labor & Industry. If given to the employer, it’s their responsibility to forward it to the insurer. Insurers must respond to the claim within 30 days.
If an employer lacks coverage at the time of the injury, the worker can seek assistance from the Uninsured Employers’ Fund.
Employees have the right to select their provider for initial treatment. After that, the employer may assign another authorized healthcare professional. Continuing care with the employee’s original doctor requires employer approval.
Workers’ compensation is more than a legal requirement—it’s a smart way to protect your workforce and your business. It offers employees peace of mind and protects companies from the financial consequences of workplace incidents.
If you’re unsure about your obligations or how to get started, Beyond is here to help. Our team can walk you through the process and connect you with reliable insurance options.
