Montana Subcontractor Insurance Rules: What General Contractors Need to Enforce
If you're a general contractor in Montana, you already know the risks of hiring uninsured or underinsured subcontractors. But what exactly should you require?
This post breaks down the key coverages, must-haves, and risk transfer best practices.
Why Subcontractor Insurance Matters in Montana
Hiring a sub without the right coverage can leave you footing the bill for their mistake. We’ve seen it firsthand: claims denied because of expired policies, injured workers who weren’t properly covered, or liability pushed back onto the GC because the subcontractor lacked endorsements.
Don’t let "they said they were covered" be your risk management plan.
Workers' Comp or ICEC: What’s Required in Montana
Montana requires that every subcontractor either:
Carry active Workers' Compensation Insurance, or
Have a valid Independent Contractor Exemption Certificate (ICEC) on file with the state
If a sub says, "I'm exempt," that’s not enough. You need to see and retain a current ICEC, or you could be considered the employer in the event of an injury claim.
Recommended Insurance Coverages for Subcontractors
Here’s what we generally see carriers requiring:
General Liability:
$1,000,000 per occurrence
$2,000,000 general aggregate
Includes:
CG 2010 (ongoing operations)
CG 2037 (completed operations)
Additional insured status
Primary & non-contributory wording
Waiver of subrogation
Per project aggregate if available
Workers' Comp:
$500,000 minimum limits (unless exempt with ICEC)
Waiver of subrogation required
Commercial Auto:
$1,000,000 combined single limit
Must include owned, hired, and non-owned auto
Umbrella/Excess Liability:
$1,000,000+ required for high-risk trades (excavation, roofing, structural, etc.)
Professional Liability:
$1,000,000 / $2,000,000 required if design or engineering services are performed
Certificates of Insurance: Don’t Just Collect Them—Check Them
Always collect Certificates of Insurance (COIs) before work begins. But more importantly:
Confirm policy effective dates
Review limits and endorsements
Ensure you’re listed as Additional Insured
Require notice of cancellation: 10 days for non-pay, 30 days for other
Request updated COIs annually
Just having a COI doesn’t guarantee coverage—read it.
Lessons from the Field
We once helped a GC quote a job where one subcontractor looked more expensive on paper. But after reviewing endorsements, we saw they had the exact coverage needed, while the cheaper quote lacked CG 2037 and didn’t name the GC as an additional insured.
Choosing the wrong sub doesn’t just affect pricing. It affects your protection.
