National Average Cost of Workers' Compensation Insurance

Healthcare $1,825 Per $100,000 payroll

Retail Trade $2,850 Per $100,000 payroll

Construction $7,430 Per $100,000 payroll

Workers' Compensation Insurance Laws in Montana

With few exceptions, all employers in Montana are required to either cover their employees with a workers' compensation insurance policy or be approved by the state to self-insure.

When employers are made aware of a work-related injury or occupational illness, they must provide notification to the Montana Department of Labor and Industry within six days of notification. This can be done by filing a First Report of Injury (REOI) form.

Employees may seek initial treatment from a doctor of their choice. However, your insurance company may require further treatment to be provided by a physician of their choosing.

Failure to carry required workers' compensation insurance can result in penalties equal to twice the amount you would have paid if you'd had this required insurance. Additionally, you can face fines, fees, court costs, and interest, and a lien can be placed on your business by the State of Montana until all fines and penalties are paid in full.

Common Workers' Compensation Claims in Montana

The Top 5 industries with the most claims filed in this state are, in order:

  1. Health care and social assistance
  2. Retail trade
  3. Educational services
  4. Construction
  5. Public administration

The Top 10 most reported injuries in Montana are, in order:

  1. Strains
  2. Slips/trips and falls
  3. Struck by an object
  4. Punctures, cuts, or scrapes
  5. Strike against or step on
  6. Caught in, under, or between something
  7. Motor vehicle accident injury
  8. Foreign matter in eye(s)
  9. Exposure to radiation
  10. Repetitive motion injuries

Every year, there are about 25,000 workers' compensation insurance claims filed in Montana.

FAQ: Workers' Compensation Insurance in Montana

Workers' compensation insurance (or "worker's comp") is a policy designed to protect employers and employees alike. It can provide coverage for medical expenses, lost wages, and rehabilitation services if an employee is injured on the job or is diagnosed with an occupational illness.

Every type of job is assigned a classification code, and each class code is assigned a base rate for coverage. Workers' compensation insurance companies can raise or lower these base rates up to 25% based on discounts, incentives, and claims histories.

Let's look at how much workers' compensation insurance costs for a few different kinds of jobs in Montana. These rates are for every $100 of employer payroll.

  • Landscapers: $3.81 to $7.24
  • Plumbers: $2.81 to $5.34
  • Roofing contractors: $21.54 to $40.93
  • Retail store workers: $1.08 to $2.05
  • Clerical workers: $0.19 to $0.36
  • Restaurant workers: $0.90 to $1.71

As you can see, workers’ comp rates are higher for jobs that have a high risk of injuries and occupational illnesses. Your quoted costs will be based on the number of employees you have, how much they are paid, the types of jobs they do, and your company's history of accidents and workers’ compensation claims. 

Montana law requires that all employers with one or more employees have workers’ compensation insurance. There are some exceptions. You do not need to buy coverage for:

  • Sole proprietors, partners, corporate officers, or LLC members
  • Certain family members
  • Real estate or insurance salespeople who are paid by commissions
  • Domestic workers
  • Independent contractors, freelancers, or casual employees

This state operates a no-fault workers’ compensation system in which an injured employee is entitled to receive benefits for a work-related injury or illness, regardless of who is at fault. 

In Montana, workers' comp is required immediately upon hiring a new employee. You'll want to be equipped with coverage before any of your workers get injured on the job so that your business won't be held financially liable. Coverage doesn't kick in for workplace incidents until after you purchase a policy.

Workers' compensation insurance can protect your business against financial losses and potential lawsuits by ensuring that workers who are injured on the job receive the medical benefits and compensation for lost wages they deserve. 

Workers' compensation insurance covers the following:

  • Traumatic injuries
  • Repetitive-type injuries
  • Certain mental injuries
  • Occupational diseases

Workers' compensation insurance in Montana provides injured employees with:

  • Full coverage for all medical treatment and hospital stays
  • Coverage for related expenses like ambulance rides, prescription medication, physical therapy, and supplies like crutches and slings
  • Meals, lodging, and mileage reimbursement if employees must travel far for necessary medical care
  • Disability pay if the employee must take time off work to recuperate
  • Funeral and burial costs, and death benefits to the employee's spouse and dependents if a work injury is fatal

As with any type of insurance coverage, workers' comp has some limitations. It is always a good idea to review what your policy will and will not cover when you make a purchase.

Workers' comp does not cover:

  • Employee illnesses or injuries sustained outside of work
  • Accidents that occur while an employee is under the influence of drugs or alcohol
  • Injuries sustained while committing a crime
  • Intentionally self-inflicted injuries

Be sure to be aware of what your policy will and will not cover when making a purchase. An independent insurance agent can help you understand your policy's fine print.

A workers' compensation insurance certificate is a document that shows proof of insurance. Sometimes, clients may request to see this proof before they will hire you to do a job. The workers' compensation insurance certificate includes details like:

  • Name and address of the insured
  • Name of the insurance company and your policy number(s)
  • Effective date and expiration date of each policy listed
  • Your liability coverage limits

You will be issued a certificate by your insurer when you purchase your policy. 

Independent insurance agents make finding the right coverage easy by shopping and comparing insurance quotes for you. Not only that, but they’ll also cut the jargon and clarify the fine print so you know exactly what you’re getting.

No business is too small to benefit from working with an independent agent. These agents work with multiple insurance companies to find you the best workers' comp coverage at the most competitive price. Arrange an obligation-free consultation with an independent insurance agent near you to get started.

No. Workers' compensation benefits received by employees are not taxable.