Montana Workers' Compensation Insurance
Everything you need to know about workers' comp in Montana: when it's required, who's exempt, average rates, and how to get coverage in 60 seconds.
When is workers' comp required in Montana?
Required for any employer with at least one employee.
Sole proprietor & partnership rules
Sole proprietors are exempt unless they elect.
Owner / corporate officer exclusion
Officers and LLC members may be excluded.
Montana-specific notes
Montana State Fund is a major carrier.
How much does workers' comp cost in Montana?
The average workers' comp rate in Montana is approximately $1.66 per $100 of payroll. Your actual rate depends on your industry class code, claims history, payroll size, and carrier.
Example: a Montana business with $100,000 in payroll at the state average rate would pay approximately $1,660 per year. A clerical-only business (class code 8810) would pay much less; a roofing contractor (5551) would pay much more.
Want an exact rate for your business?
Class code rates vary widely. Get a free quote and we'll look up your exact Montana rate for your industry.
Get My Montana Quote →Montana workers' comp by industry
Industry-specific rates, common class codes, and requirements for Montana businesses:
Frequently asked — Montana workers' comp
Do I need workers' comp if I have only one employee in Montana?
Yes — Montana requires workers' comp coverage starting with one employee.
Are 1099 contractors covered under my Montana workers' comp policy?
Generally no — true independent contractors are not employees and not covered. However, Montana (like most states) applies an "ABC test" or similar to determine if a 1099 worker is actually a misclassified employee. If they're misclassified, you may owe back premium and penalties. Many general contractors require their 1099 subs to carry their own workers' comp.
Can I get pay-as-you-go workers' comp in Montana?
Yes — most major carriers offer pay-as-you-go workers' comp in Montana, with premium based on actual payroll each pay period instead of a large upfront deposit.
What if I'm being audited by my Montana workers' comp carrier?
Workers' comp audits often result in additional premium owed because of misclassified employees, missed payroll, or wrong class codes. We offer free audit reviews and can dispute incorrect classifications with your carrier. In many cases we save clients thousands.