Workers comp coverage required in Maine
Employers with one or more employees are required to carry workers' compensation insurance. Verified 2026-05-09.
Who must carry workers comp in Maine?
Maine workers compensation coverage is required Employers with one or more employees are required to carry workers' compensation insurance.
The threshold language matters: states write the rule slightly differently. Some count any worker, some count only W-2 employees, some count owners separately, some have industry-specific exemptions (agriculture, domestic service, casual labor). For a Maine employer with a non-trivial workforce, the safest default is: assume coverage is required and confirm with the state department of insurance or a local agent.
How the threshold interacts with 1099s and subs
As of October 25, 2023, an individual who wants to create a rebuttable presumption of independent contractor status may file a statement - Independent Contractor Statement (Form WCB-267), with the Board. The Board will no longer review or approve Predetermination Applications (WCB-266). A principal contractor is liable for injuries to employees of an uninsured subcontractor.
Penalty for going without
Penalties include fines, stop-work orders, and the employer is directly liable for all benefits. The financial penalty is usually a fraction of the human cost: an injured employee at an uncovered employer can sue directly under tort law instead of being limited to the workers comp benefit, exposing the owner to lost-wage damages, pain and suffering, and punitive damages without the corporate veil.
Related reading
FAQs
Who has to carry workers comp in Maine?
Employers with one or more employees are required to carry workers' compensation insurance.
When does the requirement kick in for a new Maine employer?
The clock starts on the first day the first qualifying employee is on the books. Maine does not have a grace period for new employers, so a policy needs to be bound on or before the first hire date. Some agents can issue same-day binders for low-risk class codes.
What is the penalty for not having workers comp in Maine?
Penalties include fines, stop-work orders, and the employer is directly liable for all benefits.
Do 1099 contractors trigger the coverage requirement in Maine?
As of October 25, 2023, an individual who wants to create a rebuttable presumption of independent contractor status may file a statement - Independent Contractor Statement (Form WCB-267), with the Board. The Board will no longer review or approve Predetermination Applications (WCB-266).
Are subcontractors counted toward the threshold in Maine?
A principal contractor is liable for injuries to employees of an uninsured subcontractor.
What happens if I am audited and found non-compliant in Maine?
Maine typically issues a stop-work order, assesses back premium for the period of non-coverage, and adds penalties on top. Specifically: Penalties include fines, stop-work orders, and the employer is directly liable for all benefits. Severe or repeat violations can lead to criminal charges and personal liability for the business owner, separate from the corporate veil.