State insurance guide
Montana Business Insurance Guide 2026
Montana's Workers' Compensation Act applies to all employers: an employer with any employee must elect coverage under Plan 1 (self-insurance), Plan 2 (an insurer) or Plan 3 (the Montana State Fund). Auto liability minimums and paid leave rules follow, each with its official source.
Explore Montana requirements
Open the state requirements checklistMontana's Workers' Compensation Act applies to all employers: an employer with any employee must elect coverage under Plan 1 (self-insurance), Plan 2 (an insurer) or Plan 3 (the Montana State Fund) (Montana Code Annotated 39-71-401, Employments covered and exemptions; MCA 39-71-2101; MCA 39-71-2201; MCA 39-71-2311). Auto liability coverage must be at least $25,000 per person and $50,000 per accident for bodily injury and $20,000 for property damage (Mont. Code Ann. § 61-6-103 (Montana Code Annotated 2025)). Montana has no state paid family leave or disability insurance program, according to NCSL's table.
The sources were checked on October 3, 2026. For a ruling on your own situation, ask the agency linked in each section.
Shopping for business insurance in Montana? Request coverage help
Workers' compensation
Who must carry it: 1 or more employees (Montana Code Annotated 39-71-401, Employments covered and exemptions).
Exemptions and exclusions
MCA 39-71-401(2) excludes, unless coverage is elected, household or domestic employment, casual employment, sole proprietors, working partners and members of member-managed LLCs, commission-only real estate, securities or insurance salespersons, direct sellers, certain qualifying corporate officers, and other listed employments (Montana Code Annotated 39-71-401, Employments covered and exemptions).
The Montana State Fund is one of three ways to secure coverage rather than the only source: Plan 1 is self-insurance (MCA 39-71-2101), Plan 2 is insurance with an insurer (MCA 39-71-2201), and the statute describes the state fund as an option to insure with it (MCA 39-71-2311).
The agency to ask is the Montana Department of Labor & Industry, Employment Relations Division. When a proposal arrives, the workers' comp calculator lets you check its payroll math, and the workers' compensation guide explains what you are buying.
Auto liability minimums
Montana sets these minimum auto liability limits:
- Bodily injury liability: $25,000 per person and $50,000 per accident
- Property damage liability: $20,000 per accident
- In force: per the 2025 Montana Code Annotated
- Source: Mont. Code Ann. § 61-6-103 (Montana Code Annotated 2025)
If your business runs commercial or for-hire vehicles, they can face different or higher federal or state requirements, so check any lease or client contract too; the commercial auto guide can help.
Paid leave and disability insurance
There is no state paid family and medical leave insurance program and no state temporary disability insurance program in Montana, according to NCSL's table, last updated November 7, 2025 (NCSL: state family and medical leave laws; cross-checked on October 3, 2026 with the U.S. Department of Labor Women's Bureau).
Compilations can lag new laws, as Virginia's 2026 program shows (Code of Virginia § 60.2-801). Before planning Montana payroll for a future year, confirm the position with the Montana Department of Labor & Industry.
Other requirements to check
Licenses, leases and client contracts in Montana can set their own general liability limits or certificate wording. The certificate of insurance checklist helps you track them, and the requirements-by-state guide compares states.
Where to verify
- Workers' compensation: Montana Department of Labor & Industry, Employment Relations Division
- Auto liability minimums: Mont. Code Ann. § 61-6-103 (Montana Code Annotated 2025)
- Paid leave and disability insurance: NCSL state family and medical leave laws and the U.S. Department of Labor Women's Bureau
Our state requirements checklist turns your employee count and vehicle use into questions for those offices. To ask PolicyBenchmark for a follow-up about your Montana business, request coverage help.
Frequently asked questions
Does a Montana business with one employee need workers' compensation?
Generally, yes: Montana applies the requirement from the first employee (Montana Code Annotated 39-71-401, Employments covered and exemptions). Exemptions listed above can still apply to particular workers or owners; the agency to ask is the Montana Department of Labor & Industry, Employment Relations Division.
Are Montana's auto minimums enough for business vehicles?
Montana's minimums are $25,000 per person and $50,000 per accident for bodily injury and $20,000 for property damage (Mont. Code Ann. § 61-6-103 (Montana Code Annotated 2025)). They are the lowest limits the law allows, not what your business needs, and commercial or for-hire use can bring different or higher requirements.
Does Montana require employers to pay into a paid leave program?
No state paid leave or temporary disability insurance program collects contributions from Montana employers, according to NCSL's table, last updated November 7, 2025. Confirm before planning a future payroll year.
About this article
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This content is for informational purposes only and does not constitute insurance advice. Always consult with a licensed insurance professional before making coverage decisions.