NEXT is Montana's best workers' compensation insurance provider, scoring 98 out of 100. The company offers a great mix of reliable customer service, very low workers' comp rates and an extensive coverage selection. Thimble and biBerk are good runners-up to consider.
Cheapest Workers' Comp Insurance in Montana
Updated: June 4, 2025
Advertising & Editorial Disclosure
Key Takeaways
NEXT, Thimble, biBerk, Nationwide and The Hartford are the best cheap workers' comp insurance providers in Montana.
For most small businesses in Montana, workers' compensation coverage costs around $1,211 per year or $104 per month.
Workers' comp insurance is required in Montana for all companies with employees to cover expenses from employees sustaining injuries or illnesses during business activities.
Best Cheap Workers’ Comp Insurance Companies in Montana
| Next | 98 | $211 |
| Thimble | 93 | $288 |
| biBERK | 92 | $458 |
| Nationwide | 87 | $583 |
| The Hartford | 87 | $744 |
*Rates and scores are for software development businesses with small (five employees), medium (20 employees) and large (100 employees) operations, aggregated for an overall best recommendation.
NEXT: Best Overall
pros
Great reputation
Most affordable rates overall
Business insurance focus
cons
Slower quotes process
May be less affordable for larger businesses
COMPANY HIGHLIGHTS
NEXT offers the most affordable workers' comp insurance in Montana and the second-best customer service experience overall, with a rating of 4.7 out of 5.0. Moreover, buying multiple policies with the company can earn you a discount of up to 10%.
How Much Is Workers' Comp Insurance in Montana?
Workers' comp rates for Montana businesses range from $1,211 to $14,692 per year. This range applies only to software development companies. Your actual rates will vary based on:
- Number of employees
- Industry risk level
- Specific work performed by employees
- Claims history
| Businesses with five or less employees | $104 | $1,211 |
| Medium-size small businesses | $292 | $3,447 |
| Larger small businesses | $1,247 | $14,692 |
Factors That Impact Workers’ Compensation Costs in Montana
The cost of workers' compensation insurance varies for each business based on several factors:
Payroll costs
Payroll directly affects workers' compensation costs as premiums are calculated based on every $100 of payroll, meaning higher total wages result in proportionally higher insurance costs. Additionally, payroll serves as the foundation for determining both the base premium calculation and the overall risk exposure that insurance companies use to set rates for each business.
Number of employees
Businesses with larger workforces face higher workers' compensation premiums due to increased statistical risk of workplace injuries. Insurance companies calculate rates based on employee count and claims exposure, making coverage more expensive as workforce size grows.
Employee class code
Employee class codes determine your insurance rates based on your employees' type of work. Higher-risk jobs like construction or manufacturing typically face steeper rates than office-based roles. Insurance companies assign specific codes to different occupations, each with its risk level and corresponding premium rate.
Previous claims
Workers' compensation rates are significantly influenced by your company's claims history, with insurers using your past workplace injury records to predict future risk and adjust premiums accordingly. Businesses with frequent or costly claims typically face higher rates through experience modification factors, while those with clean safety records often receive lower premiums as insurers reward their demonstrated commitment to workplace safety.
Montana Workers' Comp Insurance: Buyer's Guide
Finding the right business insurance can be challenging. We've broken down how to get the best workers' comp coverage, who needs it and what this type of policy covers to guide you.
How to Get the Best Workers' Comp Insurance in Montana
Here are the steps to help your organization get the best workers' compensation policy possible:
- 1
Learn about required coverages and options
Research your state's regulations first, as requirements and options vary widely. The coverage you need depends on your industry, organization size and claims history. Talk to a business insurance agent about what's right for your company before buying to avoid getting too much or too little workers' comp insurance.
- 2
Research costs and providers
Research average costs and providers for your specific business to determine which companies to get quotes from. Also, consider state-provided options and whether self-insurance is possible in your state.
- 3
Consult similar businesses
Talk to other businesses in your community, especially those similar to yours. Ask about their experiences, needs and coverage choices to help inform your decision more personally.
- 4
Compare multiple providers through different means
Get multiple quotes and compare providers on equal terms to find the best deal. Prices vary depending on how you get quotes — online comparison sites versus speaking with an agent. Use different methods and contact various companies to gain the most balanced view of what's best for your business.
Do You Need Workers’ Compensation Insurance in Montana?
All Montana businesses must carry workers' compensation insurance. Sole proprietors, partners and corporate officers who fully own a corporation may choose to be excluded.
WORKERS’ COMP PENALTIES IN MONTANA
Employers in Montana must follow specific rules for workers' comp insurance. If they don't, they could face serious penalties:
- Civil penalties:
- Minimum fine of $200 for failing to provide workers' compensation coverage
- Fine of double the amount of premium owed, with a $200 minimum penalty
- Steeper penalties for employers who go without coverage for extended periods
- Financial liability:
- Required to repay the Uninsured Employer's Fund for any money paid on behalf of injured employees while insurance was not in force
- Full liability for employee medical expenses and lost wages if a workplace injury occurs
- Independent contractor violations:
- Up to a $5,000 fine per violation for failing to comply with the independent contractor exemption certificate requirements
- Penalties for both independent contractors and hiring agents who violate the compliance requirements
What Does Workers’ Compensation Insurance Cover in Montana?
Workers' compensation insurance provides essential benefits to employees with work-related injuries or illnesses. This coverage typically includes medical care, disability benefits and lost wages for affected workers, paying 66% of weekly wages under Montana law. It protects employees while shielding businesses from potential legal claims related to workplace injuries or illnesses.
Best Workers' Compensation Insurance Montana: Bottom Line
NEXT, Thimble and biBerk are the best and most affordable workers' comp insurance providers in Montana. While we recommend these companies, compare rates and consult similar businesses in your industry to find the best deal.
Workers' Comp Insurance in Montana: FAQ
Below are answers to frequently asked questions about Montana workers' comp insurance from MoneyGeek experts:
Which company has the best workers’ compensation insurance in Montana?
NEXT offers Montana's best workers' compensation insurance with competitive pricing (averaging about $161 per month) and a low complaint index. However, your best insurance option depends on your industry, workforce size and state requirements.
Does Montana require businesses to have workers’ compensation insurance?
In Montana, workers' comp insurance is mandatory for all businesses, though sole proprietors, partners and corporate officers with full ownership may opt out.
How much does workers’ compensation insurance cost in Montana?
In Montana, a medium-sized small business with around 20 employees typically incurs a monthly workers' compensation insurance expense of around $292.
How We Rated Workers' Comp Insurance Companies in Montana
MoneyGeek calculated workers' compensation insurance rates using a software development business with five, 20 and 100 employees to represent various organization sizes.
Our scoring methodology included:
- Affordability (60%): Overall cost compared to other providers and different business profiles
- Customer experience (30%): Ratings from actual customers, J.D. Power studies, AM Best financial stability ratings and our team's experience with quote processes
- Coverage (10%): Additional options beyond standard offerings and breadth of industries served
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- Montana State Fund. "Standing Strong for Montanans." Accessed June 4, 2025.
- NEXT. "Customer Reviews." Accessed June 4, 2025.