Maine workers' compensation insurance: Your guide to requirements and getting a policy
If you’re a Maine employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
Workers’ compensation is more than just a compliance requirement – it’s a safeguard for both employers and employees. If someone gets hurt or falls ill due to their job, workers’ comp steps in to provide medical treatment and partial wage replacement. For business owners, it helps prevent costly lawsuits and keeps operations legally protected.
Yes. In Maine, nearly every business with one or more employees must carry workers’ compensation insurance. Oversight is handled by the Maine Workers’ Compensation Board, which enforces state laws and supports both sides of the employment relationship.
However, some exemptions apply depending on business type and structure.
Seasonal/Casual Laborers in Agriculture or Aquaculture: Employers with at least $25,000 in liability coverage and $5,000 in medical payments coverage may be exempt.
Small Agricultural Operations: Businesses employing six or fewer workers in farming or aquaculture can be exempt if they maintain $100,000 per employee in liability insurance and at least $5,000 for medical payments.
Corporate Stakeholders: Owners holding 20% or more of a corporation’s voting stock can opt out of workers’ comp by submitting an approved waiver form.
Family Members: A sole proprietor’s spouse, children, or parents may also waive coverage with proper documentation.
Sole Proprietors: Individuals without employees aren’t required to carry workers’ compensation and do not need to submit a waiver.
LLC Members: LLC “owners” are not required to fill out a waiver to be exempt. However, family members employed by the LLC can waive coverage via written consent.
Nonprofit Executives: Officers of nonprofit organizations are not automatically covered unless the company includes them in its workers’ comp policy.
Independent Contractors: Typically, they are not covered under your workers’ comp plan. To understand the distinction between contractors and employees, Beyond offers a helpful guide on worker classification.
You have a few options when securing a policy:
Private Insurance Carriers: Many businesses go through licensed private insurers that specialize in commercial insurance. Beyond can help connect you with professionals who understand your specific needs.
Self-Insurance: Large companies with strong financial backing may apply to self-insure. While this offers more flexibility, it also comes with significant risk. If your employee needs long-term treatment, all expenses fall on your business.
Assigned Risk Pool (MEMIC): If you’ve struggled to get coverage — perhaps due to your industry or claims history — the Maine Employers’ Mutual Insurance Company (MEMIC) is the state’s last-resort carrier, required by law to insure businesses that can’t find coverage elsewhere.
Failing to carry proper workers’ compensation insurance in Maine can lead to serious consequences:
Civil Lawsuits: Employees may sue for workplace injuries.
Criminal Charges: You could be charged with a Class D crime.
Financial Penalties: Fines may reach $10,000 or 108% of the premium you should have paid — whichever is higher.
Business Impact: You risk losing your business license or corporate charter.
At Beyond, we simplify compliance. Whether it’s helping you obtain the right coverage, classify your workforce, or understand the latest legal requirements, we’re here to support your growth — and protect your business.
Have questions? Our team is ready to help you find a plan that works best for your company and your employees.
