A Montana workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — Sole proprietors, working members of a partnership, working members of a limited liability partnership and working members of a member-managed LLC are exempt unless they elect coverage (§39-71-401(2)).
But if they regularly perform services at locations other than their own fixed business location, they must either elect coverage or get an Independent Contractor Exemption Certificate (ICEC) (§39-71-401(3)). Corporate officers of quasi-public or private corporations and managers of manager-managed LLCs are exempt if they own 20% or more of the shares or of the LLC. Ownership can be counted together with qualifying relatives.
There is no limit on the number of officers. — while the law still requires coverage for employees once a business has 1 or more. This guide explains who qualifies for the Montana workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up. Verified against Montana sources as of October 2026.
Montana at a Glance
| Coverage required at | 1 employee(s) |
| Who may elect out | Sole proprietors, working members of a partnership, working members of a limited liability partnership and working members of a member-managed LLC are exempt unless they elect coverage (§39-71-401(2)). But if they regularly perform services at locations other than their own fixed business location, they must either elect coverage or get an Independent Contractor Exemption Certificate (ICEC) (§39-71-401(3)). Corporate officers of quasi-public or private corporations and managers of manager-managed LLCs are exempt if they own 20% or more of the shares or of the LLC. Ownership can be counted together with qualifying relatives. There is no limit on the number of officers. |
| Exemption form | Application for Independent Contractor Exemption Certificate (ICEC), form DLI-ERD-WCR003 (revised 02/07/2026). Corporate officer and LLC manager exemptions need no state form; they apply by operation of §39-71-401(2)(r). |
| Filed with | Montana Department of Labor & Industry, Employment Relations Division, Independent Contractor Central Unit. File online at https://aca-prod.accela.com/POL (“Apply for a License”). Program page: https://erd.dli.mt.gov/work-comp-regulations/montana-contractor/independent-contractor/. Contact: [email protected], (406) 444-7734. |
| Filing fee | $125 |
| Renewal | An ICEC is valid for 2 years and must be renewed. Each renewal costs the same nonrefundable 125 fee, and so does reinstating a revoked certificate (ARM 24.35.121). Reissuing a current certificate may cost 10. Applicants need 15 points of business documentation for each trade or occupation listed. |
| Penalty for being uninsured | §39-71-504: the Department may charge the greater of up to double the premium the employer would have paid under Plan No. 3 (Montana State Fund), or 200. The premium is figured on payroll for the uninsured periods within the past 3 years. The Uninsured Employers’ Fund also collects all benefits it pays to the injured worker. There is an extra 200 penalty if the employer does not get coverage within 30 days of notice. Unpaid amounts can become a lien (§39-71-506). |
In This Montana Guide:
Who Qualifies for A Montana Workers Comp Exemption
Sole proprietors, working members of a partnership, working members of a limited liability partnership and working members of a member-managed LLC are exempt unless they elect coverage (§39-71-401(2)). But if they regularly perform services at locations other than their own fixed business location, they must either elect coverage or get an Independent Contractor Exemption Certificate (ICEC) (§39-71-401(3)).
Corporate officers of quasi-public or private corporations and managers of manager-managed LLCs are exempt if they own 20% or more of the shares or of the LLC. Ownership can be counted together with qualifying relatives. There is no limit on the number of officers.
§39-71-401(2)(r): an officer of a quasi-public or private corporation, or a manager of a manager-managed LLC, is exempt if they own 20% or more of the corporation’s shares or 20% or more of the LLC. That ownership can be direct or combined with qualifying relatives. No form has to be filed for this exemption.
To bring officers or managers back into coverage, the corporation or LLC gives written notice to its board of directors or management organization. If the employer is on Plan No. 2 or 3, the notice must also go to the insurer (§39-71-401(3)(b)). An exempt officer or manager may apply for an ICEC but is not required to.
Working members of a partnership, a limited liability partnership or a member-managed LLC are exempt from coverage (§39-71-401(2)(d)) unless they elect coverage. If they regularly work at locations other than their own fixed business location, they must elect coverage or hold an ICEC (§39-71-401(3)). Managers of a manager-managed LLC follow the 20%-ownership officer rule.
How to File the Montana Workers Comp Exemption
The form is Application for Independent Contractor Exemption Certificate (ICEC), form DLI-ERD-WCR003 (revised 02/07/2026). Corporate officer and LLC manager exemptions need no state form; they apply by operation of §39-71-401(2)(r).. It is filed with Montana Department of Labor & Industry, Employment Relations Division, Independent Contractor Central Unit. File online at https://aca-prod.accela.com/POL (“Apply for a License”). Program page: https://erd.dli.mt.gov/work-comp-regulations/montana-contractor/independent-contractor/. Contact: [email protected], (406) 444-7734.. The fee is $125.
Renewal: An ICEC is valid for 2 years and must be renewed. Each renewal costs the same nonrefundable 125 fee, and so does reinstating a revoked certificate (ARM 24.35.121). Reissuing a current certificate may cost 10. Applicants need 15 points of business documentation for each trade or occupation listed..
Filing on the state’s own site costs nothing beyond any statutory fee — the “exemption filing services” that advertise on this search charge for the same form.
Montana Workers Comp Exemption Rules at a Glance
The exact Montana workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 1 |
| Who may elect out | Sole proprietors, working members of a partnership, working members of a limited liability partnership and working members of a member-managed LLC are exempt unless they elect coverage (§39-71-401(2)). But if they regularly perform services at locations other than their own fixed business location, they must either elect coverage or get an Independent Contractor Exemption Certificate (ICEC) (§39-71-401(3)). Corporate officers of quasi-public or private corporations and managers of manager-managed LLCs are exempt if they own 20% or more of the shares or of the LLC. Ownership can be counted together with qualifying relatives. There is no limit on the number of officers. |
| Corporate officers | §39-71-401(2)(r): an officer of a quasi-public or private corporation, or a manager of a manager-managed LLC, is exempt if they own 20% or more of the corporation’s shares or 20% or more of the LLC. That ownership can be direct or combined with qualifying relatives. No form has to be filed for this exemption. To bring officers or managers back into coverage, the corporation or LLC gives written notice to its board of directors or management organization. If the employer is on Plan No. 2 or 3, the notice must also go to the insurer (§39-71-401(3)(b)). An exempt officer or manager may apply for an ICEC but is not required to. |
| LLC members and partners | Working members of a partnership, a limited liability partnership or a member-managed LLC are exempt from coverage (§39-71-401(2)(d)) unless they elect coverage. If they regularly work at locations other than their own fixed business location, they must elect coverage or hold an ICEC (§39-71-401(3)). Managers of a manager-managed LLC follow the 20%-ownership officer rule. |
| Form | Application for Independent Contractor Exemption Certificate (ICEC), form DLI-ERD-WCR003 (revised 02/07/2026). Corporate officer and LLC manager exemptions need no state form; they apply by operation of §39-71-401(2)(r). |
| Where to file | Montana Department of Labor & Industry, Employment Relations Division, Independent Contractor Central Unit. File online at https://aca-prod.accela.com/POL (“Apply for a License”). Program page: https://erd.dli.mt.gov/work-comp-regulations/montana-contractor/independent-contractor/. Contact: [email protected], (406) 444-7734. |
| Fee | $125 |
| Renewal | An ICEC is valid for 2 years and must be renewed. Each renewal costs the same nonrefundable 125 fee, and so does reinstating a revoked certificate (ARM 24.35.121). Reissuing a current certificate may cost 10. Applicants need 15 points of business documentation for each trade or occupation listed. |
| Proof of exemption or coverage | Employers show a certificate of insurance from their Plan 1 (self-insured), Plan 2 (private carrier) or Plan 3 (Montana State Fund) coverage. Exempt workers show a copy of their ICEC. ICEC status can be checked through the Department’s license lookup on the same Accela portal (https://aca-prod.accela.com/POL) or at mtcontractor.mt.gov. |
What A Montana Workers Comp Exemption Gives Up
An exempt owner or ICEC holder gets no workers’ compensation benefits (medical or wage-loss) if injured at work. Getting an ICEC means waiving the rights and benefits of the Workers’ Compensation Act for that person’s own injuries (§39-71-401(3), §39-71-417). Confirm how this affects any right to sue with the state board and a licensed attorney.
One honest paragraph on the “ghost policy”: a minimum-premium policy with no employees sold to owners who need a certificate of insurance. It is legal in many states, but it is not a Montana workers comp exemption — it is coverage with nobody on it. If you add a worker, it must be reported, or the audit will find them.
Workers Exempt by Law in Montana
Separate from the owner’s election, Montana law exempts some classes of workers from coverage — commonly domestic workers below a threshold, casual labor, some farm labor and licensed real-estate agents paid by commission. A worker who does not fit a listed class counts toward the threshold, no matter what the 1099 says.
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Proving A Montana Workers Comp Exemption or Coverage
Employers show a certificate of insurance from their Plan 1 (self-insured), Plan 2 (private carrier) or Plan 3 (Montana State Fund) coverage. Exempt workers show a copy of their ICEC. ICEC status can be checked through the Department’s license lookup on the same Accela portal (https://aca-prod.accela.com/POL) or at mtcontractor.mt.gov.
Why the Montana Workers Comp Exemption Matters
The Montana workers comp exemption is a trade: lower cost today against no safety net if you are hurt. The second half of the trade is the one the search results never lead with. Montana runs a competitive three-plan system: Plan 1 is self-insurance, Plan 2 is a private insurer and Plan 3 is Montana State Fund.
An ICEC is tied to the specific trades listed on the application, and each trade needs its own 15 points of documentation. Any exemption becomes moot if the employer elects coverage and the insurer allows it. Confirm current details with the Department and a licensed attorney.
If the Montana workers comp exemption rules above leave any doubt about whether a worker counts, ask the state agency before you decide — the answer is free, and the penalty for guessing wrong is not.
Employer side: the Montana requirements guide covers the threshold, who counts and the penalties in full. Hurt while exempt? You may still have a claim against a third party — a licensed attorney can say.
Frequently Asked Questions
Who can file a workers comp exemption in Montana?
Sole proprietors, working members of a partnership, working members of a limited liability partnership and working members of a member-managed LLC are exempt unless they elect coverage (§39-71-401(2)). But if they regularly perform services at locations other than their own fixed business location, they must either elect coverage or get an Independent Contractor Exemption Certificate (ICEC) (§39-71-401(3)).
Corporate officers of quasi-public or private corporations and managers of manager-managed LLCs are exempt if they own 20% or more of the shares or of the LLC. Ownership can be counted together with qualifying relatives. There is no limit on the number of officers.
What form is the Montana workers comp exemption?
Application for Independent Contractor Exemption Certificate (ICEC), form DLI-ERD-WCR003 (revised 02/07/2026). Corporate officer and LLC manager exemptions need no state form; they apply by operation of §39-71-401(2)(r).. File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in Montana still collect benefits if hurt?
No. An exemption removes the owner from coverage, so there is no claim for medical care or lost wages. That is the trade.
Official Montana Sources & Resources
- Montana Montana Department of Labor & Industry, Employment Relations Division (Workers’ Compensation Regulations Bureau). Disputes go to the Montana Workers’ Compensation Court.: https://erd.dli.mt.gov/work-comp-regulations/
- Montana Workers’ Comp Statute: https://mca.legmt.gov/bills/mca/title_0390/chapter_0710/part_0040/section_0010/0390-0710-0040-0010.html
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Montana workers comp exemption guide was last verified against official Montana sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
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Disclaimer: This guide is informational only and is not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm or insurer. Workers’ comp benefits, settlement values, deadlines, and requirements vary by state and by the specific facts of your injury and change over time, and any settlement figures here are illustrative only.
Confirm your rights and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.