Every type of job is assigned a classification code, and each class code is assigned a base rate for coverage. Workers' compensation insurance companies can raise or lower these base rates up to 25% based on discounts, incentives, and claims histories.

Let's look at how much workers' compensation insurance costs for a few different kinds of jobs in Montana. These rates are for every $100 of employer payroll.

• Landscapers: $3.81 to $7.24
• Plumbers: $2.81 to $5.34
• Roofing contractors: $21.54 to $40.93
• Retail store workers: $1.08 to $2.05
• Clerical workers: $0.19 to $0.36
• Restaurant workers: $0.90 to $1.71

As you can see, workers’ comp rates are higher for jobs that have a high risk of injuries and occupational illnesses. Your quoted costs will be based on the number of employees you have, how much they are paid, the types of jobs they do, and your company's history of accidents and workers’ compensation claims. 

Montana law requires that all employers with one or more employees have workers’ compensation insurance. There are some exceptions. You do not need to buy coverage for:

• Sole proprietors, partners, corporate officers, or LLC members
• Certain family members
• Real estate or insurance salespeople who are paid by commissions
• Domestic workers
• Independent contractors, freelancers, or casual employees

This state operates a no-fault workers’ compensation system in which an injured employee is entitled to receive benefits for a work-related injury or illness, regardless of who is at fault. 

In Montana, workers' comp is required immediately upon hiring a new employee. You'll want to be equipped with coverage before any of your workers get injured on the job so that your business won't be held financially liable. Coverage doesn't kick in for workplace incidents until after you purchase a policy.

Workers' compensation insurance can protect your business against financial losses and potential lawsuits by ensuring that workers who are injured on the job receive the medical benefits and compensation for lost wages they deserve. 

Workers' compensation insurance covers the following:

• Traumatic injuries
• Repetitive-type injuries
• Certain mental injuries
• Occupational diseases

Workers' compensation insurance in Montana provides injured employees with:

• Full coverage for all medical treatment and hospital stays
• Coverage for related expenses like ambulance rides, prescription medication, physical therapy, and supplies like crutches and slings
• Meals, lodging, and mileage reimbursement if employees must travel far for necessary medical care
• Disability pay if the employee must take time off work to recuperate
• Funeral and burial costs, and death benefits to the employee's spouse and dependents if a work injury is fatal

As with any type of insurance coverage, workers' comp has some limitations. It is always a good idea to review what your policy will and will not cover when you make a purchase.

Workers' comp does not cover:

• Employee illnesses or injuries sustained outside of work
• Accidents that occur while an employee is under the influence of drugs or alcohol
• Injuries sustained while committing a crime
• Intentionally self-inflicted injuries

Be sure to be aware of what your policy will and will not cover when making a purchase. An independent insurance agent can help you understand your policy's fine print.

A workers' compensation insurance certificate is a document that shows proof of insurance. Sometimes, clients may request to see this proof before they will hire you to do a job. The workers' compensation insurance certificate includes details like:

• Name and address of the insured
• Name of the insurance company and your policy number(s)
• Effective date and expiration date of each policy listed
• Your liability coverage limits

You will be issued a certificate by your insurer when you purchase your policy. 

Independent insurance agents make finding the right coverage easy by shopping and comparing insurance quotes for you. Not only that, but they’ll also cut the jargon and clarify the fine print so you know exactly what you’re getting.

No business is too small to benefit from working with an independent agent. These agents work with multiple insurance companies to find you the best workers' comp coverage at the most competitive price. Arrange an obligation-free consultation with an independent insurance agent near you to get started.

No. Workers' compensation benefits received by employees are not taxable.