Maine Workers’ Compensation

Table of Contents

• Is Maine Workers’ Compensation insurance required?
• How does Workers’ Comp work in Maine?
• How much is Maine Workers’ Comp?
• What if you don’t have Workers’ Compensation in Maine?
• Who is exempt from Maine Workers’ Compensation insurance?
• How NEXT helps Maine small business owners

Is Maine Workers’ Compensation insurance required?

All private and public employers in Maine must have workers’ compensation insurance. In addition, the Bureau of Insurance for the State of Maine mandates some businesses to carry this type of insurance coverage, including:

• 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.

How does Workers’ Comp work in Maine?

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

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

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

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.

Maine employers must report an employee illness or injury within seven days, and 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.

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

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

Learn more about workers’ compensation coverage.

How much is Maine Workers’ Comp?

Workers’ compensation costs vary across industries. Factors that influence price include:

• The number of employees and the type of work they do
• Your total payroll
• Your insurance claims history
• The locations where you do business

The best way to determine the insurance rate for your business is to get a free instant quote from NEXT.

What if you don’t have Workers’ Compensation in Maine?

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.

Who is exempt from Maine Workers’ Compensation insurance?

In Maine, workers’ compensation is not required by the state 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).

If you’re a business owner in Maine, workers’ comp requirements don’t apply to you if:

• 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 opting out and submitting a form to the Maine Workers’ Compensation Board.

You may be eligible for a waiver approval if:

• 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 still be covered.

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 workers’ 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 NEXT helps Maine small business owners

NEXT offers an easy way to get a free workers’ compensation insurance quote, purchase coverage and instantly share a certificate of insurance in about 10 minutes.

NEXT strives to resolve every claim quickly. Learn more about our claims process and how our claims advocates will work with you after an employee injury.

Start a free instant quote with NEXT.

• What to do when an employee is injured at work
• Does a sole proprietor need Workers’ Compensation insurance?
• How to file a Workers’ Comp claim
• What is a Workers’ Compensation audit?
• How Does a Workers’ Comp Claim Affect the Employer?
• What is a monopolistic state for Workers’ Comp?
• What is a Workers’ Comp exemption?