Workers comp coverage required in Montana
Most employers with one or more employees must carry workers compensation insurance, with limited exceptions (domestic, casual, agricultural under thresholds). Verified 2026-05-09.
Who must carry workers comp in Montana?
Montana workers compensation coverage is required Most employers with one or more employees must carry workers compensation insurance, with limited exceptions (domestic, casual, agricultural under thresholds).
The threshold language matters: states write the rule slightly differently. Some count any worker, some count only W-2 employees, some count owners separately, some have industry-specific exemptions (agriculture, domestic service, casual labor). For a Montana employer with a non-trivial workforce, the safest default is: assume coverage is required and confirm with the state department of insurance or a local agent.
How the threshold interacts with 1099s and subs
Individuals performing services for remuneration are presumed to be employees unless they meet specific statutory criteria to be considered independent contractors. General contractor may be held liable for an uninsured subcontractor's workers compensation claims.
Penalty for going without
Penalties include fines up to $500 per day, stop-work orders, and personal liability for injured workers' benefits. The financial penalty is usually a fraction of the human cost: an injured employee at an uncovered employer can sue directly under tort law instead of being limited to the workers comp benefit, exposing the owner to lost-wage damages, pain and suffering, and punitive damages without the corporate veil.
Related reading
FAQs
Who has to carry workers comp in Montana?
Most employers with one or more employees must carry workers compensation insurance, with limited exceptions (domestic, casual, agricultural under thresholds).
When does the requirement kick in for a new Montana employer?
The clock starts on the first day the first qualifying employee is on the books. Montana does not have a grace period for new employers, so a policy needs to be bound on or before the first hire date. Some agents can issue same-day binders for low-risk class codes.
What is the penalty for not having workers comp in Montana?
Penalties include fines up to $500 per day, stop-work orders, and personal liability for injured workers' benefits.
Do 1099 contractors trigger the coverage requirement in Montana?
Individuals performing services for remuneration are presumed to be employees unless they meet specific statutory criteria to be considered independent contractors.
Are subcontractors counted toward the threshold in Montana?
General contractor may be held liable for an uninsured subcontractor's workers compensation claims.
What happens if I am audited and found non-compliant in Montana?
Montana typically issues a stop-work order, assesses back premium for the period of non-coverage, and adds penalties on top. Specifically: Penalties include fines up to $500 per day, stop-work orders, and personal liability for injured workers' benefits. Severe or repeat violations can lead to criminal charges and personal liability for the business owner, separate from the corporate veil.