Maine’s Workers’ Compensation Rules

An A-Z guide on everything you need to know before you purchase a Maine Workers' Comp Insurance Policy

Maine’s workers’ compensation rules state that every business in Maine with at least one employee is required to carry workers’ compensation insurance. This insurance protects workers in the event they suffer from a work-related injury or illness but also protects the business from paying for those costs out of pocket.

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Self-employed individuals are not required to purchase workers’ compensation insurance.

Business owners and partners can be excluded but can purchase coverage if they wish to be included in a policy.

Is workers’ comp insurance required in Maine?

Maine requires every business that employs one or more people to carry workers’ compensation insurance

Are you required to carry workers’ compensation insurance if you’re self-employed?

Technically, self-employed individuals are not required to purchase workers’ compensation insurance

Business owners who employ 1099 workers should make sure that self-employed contractors show proof of workers’ comp coverage. You can also require that they join you in completing a Predetermination of Independent Contractor Status to Establish Rebuttable Presumption and submit that to the state’s Workers’ Compensation Board.

Is anyone exempt from Maine’s workers’ compensation requirements?

Yes, the state does make some important exceptions, including the following:

  • Agricultural firms with certain parameters  
  • Domestic workers
  • Sole proprietors of businesses with no other employees
  • Individuals who own at least 20% of a business can file a waiver
  • Parents, spouses, or children of sole proprietors can file a waiver
  • Business partners can file a waiver
  • LLC members are automatically exempt, but parents, spouses, and children of LLC members must file a waiver
  • Corporate officers who own at least 20% of the business can file for an exemption

How much is workers’ comp coverage in Maine?

Your Maine workers’ comp rate will depend on the following factors:

  • The type of business you have
  • The size of your payroll
  • Your safety record
  • Claim history
workers comp policy cost

How can Maine small business owners save money on workers' comp?

Paying for workers’ comp insurance in Maine doesn’t have to mean blowing your budget. Small business owners can save on their premiums in many ways, including the following:

How does workers’ comp work in ME?

The process is relatively simple. First, you’ll need to have your annual payroll estimated. This creates the basis for your premium. Pay your premium and your employees will be protected for a year. 

When the term ends, your insurance company will conduct an audit. If the payroll estimate was high, you’ll receive a refund. If it was low, you’ll receive a bill.

What does workers’ comp cover in Maine?

Workers who file a workers' comp claim in Maine can receive benefits for the following:

workers comp covers medical bills

Medical bills

workers comp covers lost wages

Lost Wages

Workers' comp coverage also protects employers from legal action. This means that if an employee sues your business because of a workplace injury, the insurance will cover the legal costs of the case.

How can I get workers’ comp for my business in Maine?

Maine business owners have three options for purchasing workers’ compensation insurance.

Insurance Company: The most common method is to purchase coverage through an insurance company. Kickstand Insurance can give you an online quote in just seconds.

State Fund: High-risk businesses that cannot obtain insurance through a private insurance company can purchase a workers’ comp policy through Maine’s state fund.

Self-Insure: Finally, large businesses with the capital required can choose to self-insure. You will need to meet all the state’s requirements and submit an application with Maine’s Bureau of Insurance Self-Insurance Division

Are there penalties if I don’t carry workers’ comp insurance in Maine?

Businesses that are required to carry workers’ compensation insurance in Maine but fail to do so can face a wide range of penalties. 

For instance, business owners and decision-makers could be charged with a Class D crime and face up to $10,000 in fines or 108% of the insurance premium they would have paid, whichever is higher. In severe cases, the state may revoke the business’s license or corporate charter. 

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What death benefits are offered with workers’ comp insurance in ME?

  • Spouses and wholly dependent survivors can receive up to two-thirds of the employee’s average weekly wage for up to 500 weeks. Partially dependent survivors can receive benefits based on the amount the employee provided for them.
  • Up to $4,000 for burial costs.
  • Incidental cost coverage of up to $3,000.

How do workers’ comp settlements work in Maine?

Maine allows employees to settle their workers’ comp claims. In this situation, employees waive the right to pursue the claim any further in exchange for a lump sum or structured payment agreement. 

All workers’ comp settlements must be approved by a judge on the Workers’ Compensation Board.

What are Maine’s statutes of limitation regarding worker’s comp?

Workers in Maine have two years to file a claim from the date the employer files a First Report of Injury form or from the date of the injury if no report was required.

How do I get a workers’ comp insurance policy with Kickstand Insurance?

Start by filling out a short online form about your business. We’ll use that info to get you an estimated quote. Then, one of our experienced agents will contact you to review the quote and make sure you are getting the absolutely lowest rate possible for your business. Once the quote is finalized, you’re ready to buy the policy - often with coverage starting that day!

Learn more about Workers' Comp in Maine

Why use Kickstand to
get workers' comp insurance?

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here your quote is reviewed by experts

Why does it matter?

  • Avoid surprise bills at audit
  • Make sure all your employees are properly covered
  • Protect yourself from lawsuits

What do we check?

  • Business categorized correctly
  • Employees job roles
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