Workers’ compensation insurance plays a vital role in protecting both employees and employers when someone gets hurt or falls ill due to work-related activities. In Montana, this coverage ensures that injured workers receive the medical treatment they need and financial help if they miss work. Let’s explore how the system works and why it’s so important for businesses in Montana. 

What is Workers’ Compensation Insurance? 

Workers’ comp is a system set up to support employees who suffer work-related injuries or illnesses. It covers medical expenses, replaces lost wages if the employee can’t work, and may even compensate for long-term impairments. This way, it shields employees from major financial strain while also protecting employers from costly lawsuits. 

Who Needs Workers’ Comp in Montana? 

Nearly all employers in Montana are required by law to carry workers’ compensation insurance—even if they have just one employee. There are a few exceptions, such as domestic workers and real estate agents, but it’s still a smart move for businesses to have coverage to avoid the risk of being sued if something goes wrong. 

How Premiums are Calculated 

The cost of workers’ comp varies depending on a few factors: 

• • Type of Business: Certain industries are riskier than others. For instance, construction companies face higher premiums because accidents are more likely compared to lower-risk jobs like retail. 

• • Claims History: If a business has a history of frequent claims, their premiums may be higher. 

• • Payroll: The bigger your company, the more you’ll likely pay for coverage, since premiums are often based on your total payroll. 

Montana uses the National Council on Compensation Insurance (NCCI) to help determine rates and ensure businesses are classified appropriately.

How to File a Claim 

If an employee gets hurt on the job, they need to notify their employer right away. The employer is responsible for filing the workers’ compensation claim with their insurance provider. Speed is key here—delaying the process can make it harder for the employee to get benefits.  

Disputes over claims do happen, but Montana has a Workers’ Compensation Court to help resolve issues. If an employee feels their claim wasn’t handled properly, they also have the right to appeal. 

Workers’ Comp Benefits in Montana 

Here are some of the key benefits available through workers’ compensation in Montana: 

• • Medical Care: Employees can get the medical treatments they need, whether it’s surgery, rehab, or medication.  

• • Wage Replacement: Employees who can’t work because of their injury can receive a portion of their lost wages—usually two-thirds of their regular pay, with some limits. 

• • Long-Term Disability: If the injury results in permanent impairment, workers’ comp can also offer additional compensation. 

The Cost of Not Having Workers’ Comp 

In Montana, failing to have workers’ comp insurance can lead to serious consequences. Fraudulent claims or misclassifying workers to avoid providing coverage can result in stiff penalties, including fines and even jail time.

Wrapping Up 

Workers’ compensation insurance is essential for protecting both employees and businesses. With it, employees are covered for their medical needs and wage replacement, while employers reduce their risk of lawsuits. Because premiums vary depending on industry risks, it’s smart to consult with a trusted insurance agent who can help find the right coverage for your business. 

If you’re running a business in Montana and want to explore your options for workers’ comp insurance, reach out to us at info@mtinsurancebrokers.com or call 406 401 7220. 

-Klinton Jones 
Licensed Insurance Broker