Montana Liability & Workers' Compensation Insurance

Montana businesses and professionals need liability protection against third-party claims. Understanding Commercial General Liability (CGL), workers' compensation requirements, and specialty liability coverages is essential.

Commercial General Liability (CGL)

Standard CGL Coverage Parts

Coverage A - Bodily Injury & Property Damage

Covers third-party claims for:

• Bodily injury caused by your operations
• Property damage from your business activities
• Products you manufacture or sell
• Completed operations after work is finished

Defense Costs: Paid in addition to policy limits (not reducing coverage available for settlements).

Coverage B - Personal & Advertising Injury

Covers claims for:

• Libel and slander
• False arrest or imprisonment
• Malicious prosecution
• Wrongful eviction
• Copyright infringement in advertising
• Misappropriation of advertising ideas

Coverage C - Medical Payments

• No-fault coverage for minor injuries
• Typically $5,000 - $10,000 limit
• Covers injuries on your premises or from your operations
• Does not require proving liability

CGL Limits Structure

CGL Exclusions

Exam Tip: CGL excludes auto, workers' comp, and professional liability - these require separate policies. Know the major exclusions.

Montana Workers' Compensation

Coverage Requirements

Montana requires workers' compensation for:

Exemptions

Limited exemptions exist for:

• Sole proprietors (may opt in)
• Partners (may opt in)
• Corporate officers (limited exclusions)
• Household domestic workers (limited)
• Agricultural workers (some exemptions)
• Independent contractors (properly classified)

Important: Montana has strict rules on independent contractor classification. Misclassification can result in significant penalties.

Workers' Compensation Benefits

Temporary Total Disability (TTD)

$\text{TTD Benefit} = \frac{2}{3} \times \text{Average Weekly Wage}$

Subject to:

• Minimum weekly benefit
• Maximum weekly benefit (updated annually)
• Waiting period (after 4th day of disability)

Montana State Fund

The Montana State Fund is a competitive state fund providing workers' compensation:

Workers' Comp Insurance Options in Montana

Professional Liability Insurance

Errors and Omissions (E&O)

Professional liability insurance covers claims arising from professional services:

Key E&O Features

Claims-Made vs. Occurrence

Exam Tip: Most professional liability is claims-made. Know the difference between claims-made and occurrence triggers and why claims-made policies need extended reporting period (tail) coverage.

Umbrella and Excess Liability

Umbrella Liability

Provides additional limits above underlying policies:

Underlying Policies

Umbrella policies typically require underlying coverage:

Excess Liability

Pure excess follows form with underlying policy:

• Same coverage terms as underlying
• No drop-down coverage
• No coverage for underlying exclusions
• Lower premium than umbrella

Montana Business Liability Considerations

Agricultural Liability

Montana's agricultural businesses have unique exposures:

Hospitality and Tourism

Montana's tourism industry creates specific liability needs:

Construction Liability

Montana construction projects require attention to:

Exam Tip: Montana's diverse economy means producers must understand liability coverage for agriculture, tourism, construction, and other industries prevalent in the state.