NATIONAL INSURANCE GUIDE

Montana State Fund

Montana State Fund

Montana State Fund: Montana’s Leading Workers’ Compensation Insurance Provider (2026 Guide)

Montana State Fund (MSF) is the largest workers’ compensation insurance carrier in Montana and the state’s only non-profit public corporation dedicated exclusively to workers’ compensation. Established by the Montana Legislature in 1990, MSF operates as an independent, competitive insurer and the guaranteed market for employers who need coverage.

As of 2025–2026, Montana State Fund protects more than 23,000–25,000 Montana businesses and approximately 250,000 workers across all 56 counties and more than 350 industries.

Montana State Fund 2026 Snapshot

MetricLatest Data (2025–2026)
Policyholders23,000+ to 24,570 businesses
Workers covered~250,000
StructureNon-profit independent public corporation
Founded1990
Rate changes since 2006–62% to –64.6% cumulative reduction
2025 average rate reduction5%
Proposed 2026 rate reduction (effective July 1, 2026)Additional 5% average
2025 dividend declared$38.5 million to 22,109 policyholders
Dividends returned (last 10 years)$371.5 million
Dividends returned since 1999Over $512 million
Premium retention rate (2025)93.35%
Net earned premium (2025)$171.7 million
Counties servedAll 56 Montana counties
Industries served350+

Montana State Fund has not increased rates since 2006 and continues a multi-year trend of rate reductions while returning substantial dividends to policyholders.

What Is Montana State Fund?

Montana State Fund is mandated by law to offer workers’ compensation coverage to any Montana employer that requests it and remains current on premiums. It functions similarly to a mutual insurer but operates as a non-profit public corporation governed by a seven-member Board of Directors appointed by the Governor and confirmed by the Senate.

MSF is funded solely by premiums and investment income—no taxpayer dollars support operations. Excess earnings are returned to policyholders as dividends rather than distributed to shareholders.

Core Workers’ Compensation Coverages Provided by Montana State Fund

Montana State Fund provides the full range of benefits required under Montana workers’ compensation law:

  • Medical benefits — Doctor visits, hospitalization, surgery, medication, physical therapy, and other reasonable care related to the work injury or occupational disease.
  • Temporary Total Disability (TTD) — Wage replacement at 66⅔% of the employee’s average weekly wage (subject to statutory maximums; maximum TTD rate for claims July 1, 2026 – June 30, 2027 is $1,192 per week).
  • Permanent Partial or Total Disability (PPD/PTD) — Benefits for lasting impairment or loss of use.
  • Vocational Rehabilitation — Job retraining and placement assistance when the injured worker cannot return to the original occupation.
  • Death benefits — Support for eligible dependents of workers who die from work-related injuries or illnesses.

Employer’s Liability coverage is included at basic limits ($100,000 / $100,000 / $500,000) at no additional cost, with higher limits available.

How Montana State Fund Determines Premiums

Premiums are calculated using:

  • Payroll × applicable class code rates (agriculture and construction typically among the higher-rated classes)
  • Experience modification factor (typically ranging from approximately 0.5 to 1.5)
  • Safety credits and schedule rating credits (often 10–25% for strong safety programs)
  • Volume and other applicable discounts

MSF’s proactive safety consulting and claims management help many employers improve their experience mod and lower future premiums. Employers who combine MSF coverage with active safety engagement frequently see meaningful second-year savings.

Key Services and Advantages of Montana State Fund

  • Local claims examiners and medical staff based in Montana (offices supporting Billings, Great Falls, Missoula, and statewide coverage)
  • Free safety consultations, on-site assessments, OSHA-related training, and workplace hazard reduction programs
  • Strong return-to-work (RTW) focus with high success rates
  • Dividend program that has returned more than half a billion dollars to Montana employers since 1999
  • Fast claims decisions (reported 40% faster than statutory requirements)
  • Customer service answered by fellow Montanans (target answer time 60 seconds or less)

Eligibility and How to Obtain Coverage

Under Montana law, every employer with one or more employees must carry workers’ compensation insurance. Coverage can be obtained through:

  • Montana State Fund (guaranteed market)
  • Private insurers
  • Approved self-insurance (for financially qualified large employers)

Montana State Fund must write coverage for any eligible employer that applies and stays current on obligations.

Frequently Asked Questions About Montana State Fund

1. Can any Montana employer get coverage from Montana State Fund? Yes. MSF is required to provide coverage to any Montana employer that requests it and remains compliant with payment and reporting obligations.

2. How does Montana State Fund differ from private insurance companies? MSF is a non-profit that returns excess earnings to policyholders as dividends. It also serves as the residual/guaranteed market.

3. What safety resources does Montana State Fund offer? Personalized safety consultations, training, program development, and resources designed to reduce workplace injuries and improve experience modifiers.

4. How are claims handled? Dedicated local claims examiners, medical professionals, and return-to-work specialists manage each claim with an emphasis on timely medical care and safe return to work.

5. Does the non-profit status affect rates? Yes. MSF has reduced rates for two decades (no increase since 2006) while maintaining financial strength and paying consistent dividends.

Customer Feedback Highlights

Employers consistently note:

  • Meaningful premium reductions after working with MSF safety consultants
  • Straightforward and supportive claims handling
  • Value of the annual dividend program
  • Local, personal service from Montana-based staff who understand state-specific risks

Contact Information for Montana State Fund

  • Headquarters: 855 Front Street, Helena, MT 59601
  • Mailing Address: P.O. Box 4759, Helena, MT 59604-4759
  • Toll-free: 1-800-332-6102
  • Main office: 406-495-5000
  • Website: www.montanastatefund.com
  • Policy questions: stfpolicy@mt.gov
  • Claims: stfclaim@mt.gov

Bottom Line for 2026 Montana State Fund remains the dominant and most stable workers’ compensation option for Montana employers. With more than 23,000 policyholders, continuous rate reductions totaling over 60% since 2006, $38.5 million in dividends declared for 2025, and strong local claims and safety services, MSF continues to deliver affordable coverage, financial returns to policyholders, and practical support for safer workplaces across the state.rce through insurance, safety, and support services—helping businesses thrive while keeping employees safe.

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