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Maine Workers’ Compensation Insurance

You can save up to 25% in discounts on business insurance.*

Workers’ Compensation can help pay for:

Medical expenses

Medical expenses

Includes examinations, treatments and rehabilitation.

Lost wages

Lost wages

Gives employees time to recover from an injury before returning to work.

Retraining

Retraining

Helps employees who need to learn skills and enter a new field.

Permanent injury

Permanent injury

Provides benefits for employees who can no longer work due to injury.

Is Workers’ Compensation insurance required in Maine?

All private and public employers in Maine must have workers’ compensation insurance. In addition, the following types of businesses must have this type of insurance coverage:1

  • Water districts
  • Other quasi-public corporations
  • Municipal school committees
  • School union committees
  • Design professionals

Workers’ comp is designed to provide benefits for work-related injuries and diseases. This includes payment for medical expenses and lost wages.

Who is exempt from Workers’ Compensation insurance in Maine?

In Maine, workers’ compensation is not required for the following types of businesses:

  • Employers of domestic servants in a private home
  • Employers with no more than six agricultural or aquacultural workers (as long as the employer has employers’ liability insurance and medical payments coverage)2

Workers’ Compensation owner’s coverage

If you’re a business owner in Maine, workers’ comp requirements don’t apply to you if you fall into one of the following categories:

  • You’re a sole proprietor without employees
  • You’re a partner in a partnership
  • You’re an owner of a limited liability company (LLC)

Some business owners and executive officers may be exempt from the requirement, but they must officially waive their coverage by filling out and submitting a form to the Maine Workers’ Compensation Board.3

You may be eligible for a waiver approval if you fall into one of the following categories:

  • You are the owner of at least 20% of a corporation’s voting stock
  • You’re a parent, spouse or child working for a sole proprietor, partner or owner of 20% of a corporation’s voting stock
  • You’re an executive officer of a charitable, religious, educational or other nonprofit corporation

In these cases, it’s only the approved individuals who are exempt from the workers’ compensation coverage requirement. All other employees of the business must be covered.

Self-insurance for Maine Workers’ Compensation

According to state of Maine workers’ compensation laws, employers who qualify may self-insure for workers’ compensation instead of obtaining a policy from a licensed insurance carrier.

Self-insurance requires the employer to be responsible for all workman’s comp benefits for as long as an employee requires medical treatment or is unable to work.

Maine offers the following options for self-insurance:

Corporate self-insurance

Large businesses may apply to the Maine Bureau of Insurance to request approval to individually self-insure. The employer’s application must demonstrate that they are financially sound, and approved businesses must post security to cover workers’ comp payments and administrative expenses.

Group self-insurance

Smaller businesses may band together to form a self-insurance group. Premiums are required and members are responsible for the claims of all member employers.

How does Workers’ Comp work in Maine?

There are a number of important benefits which are covered by insurance for workers’ compensation. Maine employees who suffer from work-related injuries or illnesses are eligible to receive payment for the following:4

  • Medical bills
  • Lost wages
  • Vocational rehabilitation
  • Permanent injury
  • Survivor benefits

For example, if one of your retail store employees falls from a ladder while restocking shelves, workers’ comp would help to cover their medical care (such as emergency treatment and prescription medication) and compensate them for their lost wages while they are unable to work.

Workers’ Comp income benefits in Maine

The following types of income benefits are included in Maine workers’ compensation insurance:5

Partial benefits

The employee can return to work but is unable to earn as much as they did prior to their injury.

Partial incapacity

The employee is able to work, but still has some restrictions on what they are able to do due to their injury.

Total incapacity

The employee is unable to work at all due to their injury.

Maine also requires that death benefits be paid to the deceased employee’s dependents when the death results from a work-related injury or illness. Burial expenses up to $4,000 are covered as well.

Employer responsibilities for Workers’ Compensation insurance

In addition to obtaining the required workers’ comp insurance, Maine employers must adhere to certain reporting guidelines. Within seven days of being notified of an employee injury, they must create a written report to submit to their insurance carrier.

A copy of the report must also be given to the employee.

Employers are also required to inform employees of their rights to workers’ compensation. This includes displaying a poster in a conspicuous and accessible location in the workplace.

The poster lists instructions for what to do if an injury occurs along with contact information for the Maine Workers’ Compensation Board.6

Maine Workers’ Compensation insurance reciprocity

Reciprocal agreements with certain states are permitted when Maine employees work out of state. Employers from other states with employees who are working in Maine temporarily are not required to fulfill the workers comp insurance requirement as long as their work does not exceed any of the following periods:7

  • Five consecutive days
  • 10 days in a 30-day period
  • 30 days in a 360-day period

Are there penalties for not having Workers’ Comp coverage?

Employers who are required to have workers’ compensation insurance in Maine but fail to secure coverage may be guilty of a Class D crime. In addition, they could be subject to civil penalties of up to $10,000 or equal to 108% of the premiums that should have been paid during the period that they failed to secure coverage (whichever is larger).

Corporate charters and business licenses may be revoked, and the employer will still be responsible for payments required due to a workers’ comp claim.

What are the rates for Workers’ Compensation in Maine?

The cost of insurance premiums can vary widely for workers’ comp. Maine insurance carriers typically factor in the following when determining rates:

  • The hazards associated with your industry
  • Where your employees work
  • The size of your payroll
  • Your past insurance claims

How NEXT Insurance helps Maine businesses

With NEXT Insurance, Maine employers can get affordable workers’ compensation insurance designed with the needs of small businesses and sole proprietors in mind.

Our online portal allows you to get a quote at any time. You can review coverage options, select your insurance and get your certificate of insurance in only about 10 minutes.

Start an instant quote online today.

Our team of licensed insurance advisors is standing by if you need any help figuring out what insurance you need to protect your business.

Other business insurance policies that are important in Maine

Workers’ compensation insurance helps to protect your business, but there are other risks that this type of insurance doesn’t cover. When building your Maine business insurance package, you’ll need additional policies to make sure you are protected from all the risks you face as an employer. Most Maine businesses also consider these options:
We typically recommend:
General Liability
General Liability Insurance

General liability insurance provides coverage for common mistakes or accidents that affect someone outside of your company, such as customer injuries or property damage.



Commercial Auto
Commercial Auto insurance

Commercial auto insurance is needed for business vehicles as well as any personal vehicles you drive for work-related purposes. It helps cover expenses like medical bills and damages if one of these vehicles is involved in an accident.



Errors & Omissions
Professional Liability insurance (E&O insurance)

Professional liability insurance provides financial protection when a client or customer claims that you made a mistake in your work that cost them money.



Customer reviews

I am so excited
I am totally excited about my new insurance for my small business. I am happy that the price was in a range that I can afford, the terms were easy to understand and it was so simple to purchase my first policy. I look forward to doing business with you in the future.
Curzella J.
Easiest insurance purchase – EVER!
I was looking around trying to compare insurance and I am so lucky I found NEXT. I was able to compare levels of coverage, and all the options, without pressure from a salesperson or time limits. I was able to check out prices and it was more coverage for less than the “traditional” company I looked at.
Michael W.
Happy small business owner!
I needed liability insurance for my new small business brick & mortar location. I got the run around from another company, but NEXT provided a competitive insurance quote in a timely manner. I now have the insurance that I need and it was stress-free!
Nicole E.

Let’s find the coverage you need for your business

Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.

General Liability insurance
General Liability

Protect yourself from accidents that cause physical injury or damaged property.

Professional Liability or Error and Omissions Insurance
Professional Liability/E&O

Shield yourself from lawsuits that claim your work errors caused financial losses.

Commercial Auto Insurance
Workers’ Compensation

Cover medical bills and lost wages if your employees have an accident at work.

Commercial Auto Insurance
Commercial Auto

Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.

Tools & Equipment Insurance
Tools & Equipment

Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.

Commercial Property Insurance
Commercial Property

Keep your building, inventory and equipment protected from fire or water damage.

Business Owner’s Policy Insurance
Business Owner’s Policy

Combine general liability and commercial property into one policy to protect your business.

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* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.