Buying workers’ compensation for:


State Fund: Yes, competitive. Maine Employers’ Mutual Insurance Company (MEMIC) is a private mutual insurance company, based in Portland, Maine that sells workers’ compensation insurance to Maine employers and also serves as the guarantor of workers’ compensation for all employers in the state.

Insurance Coverage Requirements: Workers’ Compensation is compulsory in Maine, some waivers are permitted.

Who is Required to Purchase Workers’ Compensation Coverage?

All employers are required to Purchase workers’ compensation with a few exceptions.

Employers of agricultural or aquacultural laborers are exempt if employer has six or fewer workers, or more than six workers but total hours worked by all does not exceed 240 hours in a week, and has not exceeded 240 hours anytime during the 52 weeks preceding injury, and employer maintains required liability and medical coverage.

Employers of employees engaged in domestic service are not required to carry workers’ compensation insurance.

Factors that Impact Coverage

  • You are a sole proprietor or partner: In Maine, you are excluded from coverage but have the option to include yourself.
  • You are a corporate officer: You are included in coverage, you but have the option to exclude yourself if you own 20% or more of the outstanding voting stock.
  • You are a member of an LLC: Maine excludes you from coverage, but you have the option to include yourself.

Failure to Secure Compensation

The penalties for not maintaining current workers’ compensation coverage as required by law are:

  • The employer is guilty of a Class D crime.
  • The employer is liable to pay a civil penalty of up to $10,000 or an amount equal to 108% of the premium, calculated using Maine Employers’ Mutual Insurance Company’s standard discounted standard premium, that should have been paid during the period the employer failed to secure coverage, whichever is larger, payable to the Employment Rehabilitation Fund.
  • The employer, if organized as a corporation, is subject to administrative dissolution or revocation of its authority to do business The employer, if licensed, certified, registered or regulated by any board is subject to revocation or suspension of the license, certification or registration.
  • If the employer is a corporation, any agent of the corporation having primary responsibility for obtaining insurance coverage is liable for punishment. Criminal liability must be determined in conformity with Title 17-A, sections 60 and 61.

Proof of Coverage is Required

A notice in a form as the board approves, stating that the employer has conformed to this Act, together with other information as the board determines, must be posted by the employer and kept posted by the employer in each of the employer’s mills, factories or places of business. The notice must be conspicuous and posted in a place accessible to the employer’s employees.

Independent Contractors

Mistakenly classifying an employee as an independent contractor can result in significant fines and penalties.

View 20 factors used by the IRS and our independent contractor questionnaire to determine whether you have enough control over a worker to be an employer.

Key Resources

Other Tips

If your insured employs workers in multiple states or your insured’s employees are temporarily working out-of-state, they need to purchase insurance for all the states where their workers are located, according to each state’s laws. Call 1-800-476-2948 and let us walk you through it.

The nature of your insured’s business, number of employees being covered and past coverage and claims are all factors in how much their premium will cost.