Montana Workers Compensation Insurance: Costs $ Quotes from $37/mo

Montana workers compensation insurance is an essential safety net for employers and state workers. This mandatory insurance program provides financial protection to employees who sustain injuries or illnesses while on the job, offering them medical coverage and wage replacement benefits. 

Workers compensation insurance covers a broad range of workplace incidents, from sudden accidents to long-term occupational diseases, ensuring that injured employees receive appropriate medical care and financial assistance while recovering.  Read this guide to get answers for all your questions regarding workers compensation insurance in Montana. 

What is Workers Compensation?

Workers’ compensation is a state-mandated insurance program that provides financial and medical benefits to employees injured or unwell. As in many other states, this program in Montana ensures that employees who cannot work due to a work-related injury or illness receive the necessary medical care and wage replacement. 

Workers’ compensation typically covers medical expenditures, rehabilitation costs, and a portion of lost wages. Montana workers compensation laws mandate that all employers hold workers’ compensation insurance to protect their employees. 

How Does Montana Workers Compensation Work

Workers’ compensation coverage in Montana can be provided by self-insurance, private companies, or the state fund. Here’s how the Montana workers compensation system works:

  • Filling out a first report of injury (FROI) form: First Report of Injury (FROI) forms the beginning of the procedure when an employee sustains an injury on the job. A Customer Service Specialist (CSS) verifies that the FROI is comprehensive, ensuring that all required information is included.

  • Claim number generation: After the FROI is received, a claim number is assigned to identify the specific instance.

  • Claim transference: The claim is then allocated to either a Claims Examiner (CE) or automatic adjudication (AA). AA handles simpler cases and may sanction payment for treatment without recognizing obligation.

  • Communication with the injured employee: The claims within 24 hours of being assigned, examiners communicate with both the injured employee and the employer. This initial encounter is crucial for acquiring information and determining the nature of the damage.

  • Compensability determination: Typically, it takes thirty days to determine whether or not Montana workers compensation claims are compensable. This conclusion is founded on a number of variables, including medical evidence, the alleged mechanism of the incident, medical history, and witness testimony. For a claim to be compensable, the injury must have occurred in the “course and scope” of the job duties.

When Do You Need to Get Workers Compensation Insurance in Montana?

In Montana, employers are typically required to obtain workers’ compensation insurance upon hiring their first employee. This requirement pertains to the majority of businesses in the state, regardless of the number of employees. 

Therefore, if you hire even a single employee, you are typically required to carry state of Montana workers compensation. It is recommended to consult with the Montana Department of Labor and Industry or an attorney to ensure compliance with the state’s workers’ compensation laws and regulations, as there are exceptions and nuances depending on the type of employment and industry. Failure to provide the required coverage may result in fines and other legal consequences.

What Government Agency Oversees Workers Compensation in Montana

Montana Department of Labor & Industry (DLI) is responsible for workmans comp Montana and other labor-related issues. DLI is a government institution that promotes worker well-being, enforces labor regulations, and fosters mutually beneficial relationships between employers and employees. The Montana Department of Labor and Industry (DLI) carries out the following responsibilities:

  • Unemployment insurance: DLI administers the state’s Unemployment Insurance program, which provides financial assistance to qualifying employees who have lost their jobs through no fault.

  • Compensation for montana workers: DLI administers the employees’ Compensation system in Montana, ensuring that injured or ill employees receive medical care and wage replacement benefits while protecting employers from potential litigation.

  • Human rights: DLI evaluates and investigates complaints of discrimination in various areas, such as employment, housing, and public accommodations, to ensure equal opportunity for all Montanans.

  • Labor-management dispute resolution: The agency aids in resolving labor disputes and establishing productive relationships between businesses and labor organizations.

  • Building codes: DLI is essential for delineating and enforcing building codes to maintain safety and quality in the construction and allied industries.

  • Regulation and testing of weighing and measuring devices: The agency monitors the precision and impartiality of trade-related weighing and measuring devices.

  • Employment and labor market statistics research: DLI conducts research on the Montana labor market to inform policy decisions.

  • Professional boards: DLI regulates and supports various professions, ensuring that licensed professionals possess the necessary qualifications.

  • Licensing and regulations for various professions: DLI administers licensing and regulatory requirements for various professions, promoting professionalism and consumer safety.

  • Public awareness and education: The department is committed to increasing public awareness and education regarding the Montana workers compensation act. They provide educational seminars, manage community resource centers, and engage in proactive communication initiatives to ensure compliance with state labor laws.

Which Businesses Are Exempt from Getting Workers’ Compensation Insurance in Montana?

Certain enterprises in Montana are exempt from the workers’ compensation insurance requirement. The following businesses and categories are exempt from state of Montana workers compensation:

  • Sole proprietors: Sole proprietors are exempt from the requirement to carry workers’ compensation insurance.

  • Working members of a partnership: Those who actively partake in a partnership are exempt from Montana workers compensation requirements.

  • Working members of a limited liability partnership: Similar to partnerships, members actively engaged in a limited liability partnership are excluded.

  • Working members of a member-managed limited liability company (LLC): Active members of a member-managed LLC are exempt from Montana workers comp laws.

  • Dependent family members: This provision applies to sole proprietorships and partnerships only.

  • Household or domestic employees: Workers performing tasks such as house cleaning and yard labor are excluded, with the exception of those who provide home health care or domiciliary care.

  • Out-of-state employees: Non-resident employees who execute their primary duties outside of Montana are exempt. Employers in the construction industry, on the other hand, are required to provide workers comp insurance Montana to all employees, both residents and non-residents, while they are working in Montana.

  • Ordained, commissioned, or licensed ministers: The exemption applies to ministers and members of religious orders.

  • Volunteer workers: Volunteer personnel, including volunteer emergency medical technicians, are exempt, with the exception of air search and rescue volunteers, volunteer reserve or auxiliary officers, and specific volunteer firefighters.

  • Corporate officers or managers: The Montana Department of Labor and Industry may exclude corporate executives and managers of manager-managed LLCs if they meet certain criteria.

  • Independent contractors: Employers are required to verify that independent contractors have a certificate of exemption issued by the Montana Department of Labor and Industry or confirmation of workers’ compensation insurance. The employer may be held liable for claims and premium payments if this requirement is not met.

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How Much Money Does Montana Workers Compensation Insurance Give?

Workers’ compensation benefits in Montana provide financial assistance to employees who have sustained injuries or ailments on the job. The quantity of money a worker receives under the state of Montana workers compensation system varies based on the nature of their impairment and their prior earnings. Workers’ compensation benefits in Montana are classified as follows:

  • Temporary Total Disability (TTD) Benefits: Employees who are temporarily unable to work because of an injury or illness sustained on the job are compensated. Workers’ compensation benefits in Montana are typically equal to two-thirds of the employee’s total wages, up to a maximum amount determined by the date of injury. These benefits are available to the employee until he or she returns to work or reaches maximum medical improvement (MMI). 

  • Temporary Total Disability (TTD) Benefits: Employees who are temporarily unable to work because of an injury or illness sustained on the job are compensated. Workers’ compensation benefits in Montana are typically equal to two-thirds of the employee’s total wages, up to a maximum amount determined by the date of injury. These benefits are available to the employee until he or she returns to work or reaches maximum medical improvement (MMI). The utmost weekly TTD rate for injuries that occur between July 1, 2023 and June 30, 2024 is $1,034.

  • Temporary Partial Disability (TPD) Benefits: Eligible workers are those recovering from work-related injuries who are able to work part-time or in a reduced capacity for lesser pay than before the injury. The duration of TPD benefits is extended until the employee returns to his or her previous position and salary. To calculate these benefits, the difference between pre-injury and current wages is used.

  • Permanent Partial Disability (PPD) Benefits: This benefit is available to employees who have suffered permanent impairments as a consequence of work-related injuries. The amount differs based on the severity of the impairment, pay loss, and occupational factors such as age, education, and capabilities. Employees can receive PPD payments for up to 400 weeks, and if they are unable to return to their previous job, vocational rehabilitation may be provided. An employee is entitled to PPD benefits if a Class 1 impairment results in a wage loss. Regardless of wage loss, employees with Class 2 impairments are entitled to benefits.

  • Permanent Total Disability (PTD) Benefits: Determined once the employee reaches MMI and paid if they are unable to return to work due to a serious accident or illness. PTD benefits are typically equal to two-thirds of the employee’s prior total wages, up to the maximum benefit rate established by the state, with adjustments for cost-of-living after 104 weeks. These benefits remain until the individual reaches the age of eligibility for Social Security.

  • Medical Expenses: Workers’ compensation insurance covers all medical costs associated with a work-related injury or ailment, so long as the proper documentation is presented.

  • Travel Expenses: Travel, lodging, and other expenses incurred by injured employees are reimbursable at rates established by the state. Unless authorized by the Montana State Fund (MSF), reimbursement is provided for up to 100 miles of monthly travel. Expenses are not reimbursable if medical care was accessible within the worker’s location.

  • Death Benefits: In the event of a work-related fatality, the victim’s family is eligible to receive workers’ compensation death benefits in Montana. These payments are typically equal to two-thirds of the employee’s gross wages at the time of the incident, up to the state’s utmost. Additionally, the family may qualify for up to $4,000 in funeral and burial expenses.

How Long Will an Employee Wait Before Receiving Benefits?

The waiting period for workers comp insurance Montana depends on the nature and duration of the employee’s injury. When an employee is wholly injured and unable to work as a result of an injury, compensation may not be paid for the first 32 hours or four days, whichever is shorter. 

This means that workers must wait a brief period of time before they are eligible for pay. However, if an employee suffers from a state of total incapacity that renders them unfit for work for 21 days or longer, compensation must be granted retroactively, commencing with the first day of pay loss. 

Importantly, if the employee is also receiving sick leave benefits, each day of sick leave used contributes towards the 4-day waiting period, potentially accelerating the workmans comp Montana procedure.

Penalties for Not Getting Workers’ Compensation in Montana

Failure to obtain Montana workers compensation insurance is subject to severe penalties. Employers who neglect to carry the mandatory workers’ compensation insurance may be fined $200. The penalties, however, can be substantially more severe, as the fine could be double the total premium that the uninsured employer should have paid based on payroll for the previous three years while remaining uninsured. 

This means that, depending on the size of their payroll and the duration of their noncompliance, noncompliant businesses could face penalties much higher than the initial $200. To avoid these hefty fines and provide vital protection for their employees, businesses must ensure they have adequate Montana workmans comp insurance coverage.

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Montana Workers Compensation Insurance Cost

Workers compensation in Montana is $68 per month or $816 per year. Premiums for Montana workers compensation insurance depend on location, business history, claims history, number of employees, payroll, industry risk, and more. Here’s a table showing the cost of workers compensation insurance from companies we recommend: 

Company Cost per Month Cost per Year Best for
NEXT $37 $444 Best overall; Fastest Montana workmans comp insurance.
Thimble $46 $552 Businesses requiring flexible, on-demand Montana state workers compensation insurance.
Hiscox $58 $696 Businesses in Montana in search of comprehensive and adaptable workers’ compensation insurance coverage.
The Hartford $92 $1,104 Businesses seeking reliable Montana workmans comp insurance from a reputable insurance company with customizable solutions and experienced support.
Tivly $105 $1,260 Comparing workers compensation insurance quotes over the phone.

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Best Montana Workers Compensation Insurance Companies

Here are companies you might want to work with for the best workers compensation insurance in Montana. Read some of the reviews below to know their pros, cons, and average cost:



  • Convenience: NEXT user-friendly web platform lets Montana businesses acquire quotes, buy policies, and maintain their coverage online, minimizing paperwork and administrative burdens.

  • Fast quotes: For small firms that require coverage quickly, NEXT digital quotes and policy issuance can be helpful.

  • Customization: NEXT may be able to customize workers’ compensation insurance policies to meet your industry and employee needs.

  • Premium discounts: Bundle workers compensation insurance an enjoy cheap rates.


  • Couldn’t find any. 

NEXT is a digital insurer that offers workers’ compensation insurance to Montana businesses. They provide an online platform for obtaining quotes, purchasing insurance, and managing coverage. Due to its streamlined digital operations, it offers quick quotes and competitive pricing, but it may need more personalized guidance and the local presence of conventional insurance agencies. 

Best for: Best overall; Fastest Montana workmans comp insurance. 

Average cost: $37 per month

Our rating: 10/10

The Hartford


  • Experience and expertise: The Hartford is a reputable and well-established insurance company with a lengthy history, which can inspire confidence and reliance.

  • Customization: Typically, they provide businesses with Workers’ Compensation policies adaptable to their specific requirements and industries.

  • Risk management services: The Hartford often provides risk management services and resources to help businesses prevent workplace injuries and reduce claims.


  • Limited regional presence: The Hartford may have few local facilities in Montana, limiting its ability to provide in-person support and services.

The Hartford is a reputable insurance company that provides various insurance products, including workers’ compensation insurance. They offer coverage to enterprises throughout Montana and the United States. The Hartford is well-known for its extensive experience in the insurance industry and its dedication to offering comprehensive protection to employers and employees. They provide businesses with Montana state workers compensation policies that are adaptable to their requirements, enabling them to manage workplace risks and ensure the health of their workforce. 

Best for:  Businesses seeking reliable Montana workmans comp insurance from a reputable insurance company with customizable solutions and experienced support.

Average cost: $92 per month 

Our rating:  10/10



  • Marketplace of carrier: Montana enterprises have many Workers Compensation Insurance alternatives through Tivly’s marketplace of insurance carriers. This allows you to compare and select the coverage that best meets your requirements.

  • Easy quote process: Tivly simplifies business insurance quotes and coverage. Their user-friendly platform expedites a laborious and time-consuming process.

  • Outstanding rates: Tivly provides competitive prices for workers’ compensation insurance. Multiple carriers competing for your business on a platform increases your likelihood of obtaining reasonably priced coverage.


  • Not fully online:  Tivly uses technology to simplify insurance, but it may not be available online. Some stages may necessitate paper documents or off-line discussion, which adds to the complexity.

Tivly is a digital commercial insurance services provider connecting Montana businesses with insurance coverage. Tivly utilizes a unique combination of marketing and insurance technology services, supplemented by live customer support and engagement, to assist commercial clients in enhancing efficiency, boosting conversion rates, and increasing revenue. 

Their innovative approach makes it easier for businesses to locate the workers’ compensation insurance they require and streamlines the insurance procurement procedure. Call now and talk with a representative to compare quotes over the phone. 

Best for: Comparing workers compensation insurance quotes over the phone. 

Average cost: $105 per month 

Our rating:  10/10



  • Specialization: Hiscox specializes in small business insurance, which could benefit Montana businesses seeking tailored coverage.

  • Customization:  Hiscox often offers customized Workers’ Compensation insurance, enabling employers to choose coverage alternatives that meet their industry demands.

  • Online services: Hiscox’s online services make it simple for business proprietors to obtain quotes, purchase policies, and manage coverage.


  • Coverage might come from a partner: If your business is not a covered risk, Hiscox might source its workers comp coverage from a partner. 

Hiscox is an international insurance company that offers workers’ compensation insurance to enterprises in Montana. Hiscox specializes in providing insurance solutions to small and medium-sized businesses (SMBs) and offers industry-specific policies that can be customized. 

Their user-friendly online platform allows for convenient quotation generation, policy purchase, and coverage management. Hiscox’s competitive pricing, expertise in SMB coverage, and digital convenience make it a viable option for businesses seeking workmans comp Montana, despite having a physical office in only some locations. Businesses should thoroughly review terms and conditions to ensure they are adequately covered for their unique risks.

Best for: Businesses in Montana in search of comprehensive and adaptable workers’ compensation insurance coverage. 

Average cost: $58 per month 

Our rating:  9/10



  • Flexibility: Thimble allows businesses in Montana to purchase coverage on an as-needed basis, which is useful for seasonal or occasional operations.

  • Simple Use: The mobile application and web-based platform of Thimble make obtaining quotes, purchasing policies, and managing insurance simple for enterprises.

  • Affordable: For short-term initiatives, on-demand coverage may be less expensive than annual insurance for small businesses.


  • Limited coverage options: Thimble may provide fewer coverage options and endorsements than conventional insurers, leaving some businesses uninsured.

Thimble is a digital insurance provider that offers on-demand Montana workers compensation insurance. Thimble enables businesses to obtain coverage on an as-needed basis, making it suitable for short-term or project-based work arrangements. Their user-friendly online platform facilitates obtaining quotes, purchasing policies, and managing coverage, which provides small businesses with convenience. 

Best for: Businesses requiring flexible, on-demand Montana state workers compensation insurance. 

Average cost: $46 per month 

Our rating: 9/10

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