Before you start a business in Montana, you may need to accomplish several requirements to follow state regulations. One of these could be getting Workers’ Compensation insurance, which is meant to help protect your company from financial loss. Before you begin operations, it can be ideal to brush up on this requirement and look at your options.
We’ll discuss how Montana Workers’ Compensation insurance works. We’ll also share the rules and regulations unique to the state, what a policy may cover, and other important details you may want to keep in mind. Keep reading to learn more or contact us today to get a quote.
What Is Workers’ Compensation Insurance and Why Is It Important?
No matter what precautions or safety measures you take at your workplace, accidents are sometimes unavoidable. When these incidents occur, your employees can get injured as they perform their roles or work within your business. When this happens, they can file a Workers’ Compensation claim for the damage they suffered.
These claims can result in financial losses for your company. That’s where Workers’ Compensation comes in. This type of insurance plan can serve as a safety net, helping to provide the coverage you may need to help cover the cost of claims. In a way, Workers’ Compensation can also help protect your business from legal trouble.
State-specific Facts on Workers’ Compensation
Workers’ Compensation laws differ from state to state, and Montana has specific by-laws and nomenclature that are distinct from the rest. Here are some of these specific differences.
- Coverage is mandatory for most businesses: Most employers should provide coverage for their employees as mandated by the Montana Department of Labor & Industry Employment Standards Division.
- Sources for insurance: Montana doesn’t have a monopoly on Workers’ Compensation, unlike some other states. Businesses can get policies from commercial carriers as well as the state-administered fund. For those who want to self-insure, there are certain requirements you may have to meet before getting approved as outlined by the Department of Labor & Industry Employment Standards Division.
- Penalties: Montana’s Department of Labor and Industry determines whether a company has coverage for employees. If the business doesn’t have coverage, then they may need to pay a minimum of $200 or twice the amount of the premium they were supposed to pay.
- Exemptions: Not all types of employees need to be covered by insurance. For example, business partners, corporate officers, and LLC members who own stocks in the company could be exempt.
What Do Montana Workers’ Compensation Policies Cover?
Like most other states, Montana’s Workers’ Compensation insurance can cover various damages employees suffered because of injuries.
Medical Payments
When a worker is injured, they might need to get medical services and stay at a hospital. The expenses for various tests, consultations, treatments, and other services can easily build up. To help cover the costs, an employee can file a Workers’ Compensation claim and get the funds they might need. The insurance can cover this so your company may not have to pay out of pocket.
Indemnity Payments
In Montana, indemnity payments are the equivalent of lost wages. Your insurance provider can pay the employee compensation while they are unable to report to work and earn income.
Vocational Benefits
Injured workers might need vocational training and counseling to help get back on their feet or find other types of jobs if they can no longer perform their original roles. These services can be covered by the insurance plan so long as the worker qualifies.
Survivor Benefits
Some accidents can be so severe that they can result in the death of a worker. Their dependents can file a claim so they can get survivor benefits.
What Does Workers’ Compensation Insurance Not Cover?
Workers’ Compensation insurance doesn’t cover every type of injury and damage. In addition, an employee cannot file a claim if they suffer injuries in certain scenarios. If an employee gets hurt because of the following, then they may not be entitled to compensation:
- Failing to follow safety policies
- Working under the influence of controlled substances
- Inciting violence
- Operating machinery incorrectly
- Getting intentionally injured
Get Insured With PolicySweet
Since Workers’ Compensation coverage is one of the most important requirements you may need to start your business, it can be better to take care of it before your business even begins. If you’re looking for comprehensive insurance policies, turn to PolicySweet. We’ve provided coverage to many businesses in Montana and the rest of the country.
We serve companies across a broad range of industries, including retail, cleaning, contractors, personal care, and food services. In addition, we follow a systematic process that can allow us to provide prompt services.
- Step 1: First, we’ll ask questions about your business, so we can get in-depth information about your needs.
- Step 2: We’ll provide a no-obligation quote to help you make a decision.
- Step 3: Once you accept the plan and the quote, you can get immediate coverage.
Ready to get insured? Let’s talk now!
Please Note: State-specific information is subject to change at any time. Always consult with your state’s official information and resources for the most accurate information.