Do I need workers compensation insurance?

Workers Compensation Insurance Requirements in Montana

In Montana, most businesses with employees are required to carry workers compensation insurance. This insurance covers medical expenses and lost wages if an employee is injured or becomes ill due to work-related activities.

When Workers Compensation Insurance Is Required

• Employers with one or more employees: If you have at least one employee, you generally must provide workers compensation coverage.
• Type of employees: Coverage typically applies to full-time, part-time, and seasonal employees.
• Independent contractors: These are usually not covered unless they meet specific criteria under Montana law.

Operational Considerations

• Business registration: Ensure your business is properly registered with the Montana Department of Labor and Industry to comply with insurance requirements.
• Insurance procurement: Obtain workers compensation insurance through a private insurer or the Montana State Fund, which serves as the state’s insurer of last resort.
• Payroll integration: Track employee wages accurately for premium calculations and reporting.
• Recordkeeping: Maintain injury reports and insurance documentation to stay compliant and ready for audits.
• Compliance monitoring: Regularly review changes in Montana’s workers compensation rules to ensure ongoing compliance.

As of 2026

Montana requires nearly all employers with employees to carry workers compensation insurance. Exceptions may apply to some agricultural employers or sole proprietors without employees. Always verify current requirements with the Montana Department of Labor and Industry before starting operations.