If your Montana partnership has any employees, yes, it needs workers compensation, though the working partners themselves are outside coverage by default. Montana treats a working partner like a sole proprietor: exempt unless the partner elects in, while every non-partner employee must be covered from the first hire.
Who this is for: Montana general partnerships and their partners deciding what the state requires.
The short version
- Any employee means a policy (section 39-71-401), from your first worker.
- Working partners are exempt by default. A partner may elect coverage but is not automatically included.
- Electing in is available. A partner who wants protection can be added with the insurer's agreement.
- Employees are covered day one regardless of the partners' choices.
- 1099 labor still counts unless the worker is a true independent contractor with an exemption certificate.
How Montana treats partners
A working partner in a Montana partnership is in the same starting position as a sole proprietor: outside the comp system by default, and free to elect in. That is the opposite of a corporate officer, who starts covered. The practical effect is that a partnership can have several partners who are all exempt while still being required to carry a policy the instant it hires a non-partner employee. Each partner decides individually whether to elect coverage for their own injuries, and that decision never changes the duty to cover employees.
Partners and employees, side by side
| Who | Default coverage | What to know |
|---|---|---|
| Working partner | Exempt by default | May elect in for personal protection |
| Partnership with employees | Policy required | Employees covered from the first hire |
| Partnership with no employees | No policy required | Partners may still elect in; clients may ask for proof |
| 1099 helper | Depends | Covered if really an employee under the state test |
Why partnerships still buy coverage
Even when every partner is exempt, two forces pull a partnership into a policy. First, employees must be covered, and most partnerships that grow will hire. Second, the people who hire you, general contractors and commercial clients, routinely ask for proof of coverage before you can start, so a policy is often the price of the work. And if a partner does hands-on work, electing in protects that partner the way it would an employee, since health insurance usually will not pay a job injury.
A Great Falls example
Illustrative, not a quote. Two partners run an accounting firm in Great Falls and hire a part-time bookkeeper during tax season. The partners are exempt by default, but the seasonal bookkeeper is an employee and must be covered from the first day. The partners buy a policy, and one partner who also does on-site client visits elects in for her own protection. When a bank client requests proof of coverage, the firm produces a certificate the same day. See our workers comp for accounting firms page.
Real questions Montana owners ask
Does my Montana partnership need workers comp?
If it has any employees, yes, from the first hire. The working partners themselves start outside coverage.
Are partners covered automatically?
No. A working partner is exempt by default, like a sole proprietor, and can elect coverage if wanted.
Can a partner get on the policy?
Yes. A partner may elect coverage and be added with the insurer's agreement.
What if the partnership has no employees?
Then no policy is required, though partners can elect in, and clients or general contractors may still ask for proof.
Do 1099 workers count for a partnership?
Only if they are really employees. Montana uses a two-part test, and a worker without an exemption certificate is presumed an employee.
Why buy coverage if partners are exempt?
Because your employees must be covered, contracts often require it, and an uninsured injury can be very expensive.
What happens if we skip required coverage?
The partnership risks a stop-work order and a penalty tied to the premium avoided, plus liability if a worker is hurt while uninsured.
Why Montana owners choose Morrow
- We shop the right market for you. In Montana you buy workers' comp on the open market, where private insurers compete with the state-chartered Montana State Fund, which by law must insure almost any Montana employer that asks, so we can shop your rate across carriers and still keep the State Fund as a guaranteed backstop for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Montana guides
Every Montana business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Montana (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Do sole proprietors need workers comp?
- Hiring your first employee: what changes
- Montana accounting firm workers comp
This guide is general information, not legal advice. Montana rules and penalty amounts can change, so verify current requirements with the Montana Department of Labor and Industry, Employment Relations Division or a licensed advisor before you rely on them. Last updated: July 2026.