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Maine Workers’ Compensation Insurance

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:

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.

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.

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.

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