Popular Questions about Business Insurance in Maine

Business insurance (also called “commercial insurance”) is designed to safeguard your company against financial losses related to the various hazards it may face.

Potential risks include such things as severe weather events, property crimes, and liability lawsuits. Business insurance coverage can prove quite beneficial as is evidenced by the fact that companies in Maine collected more than $1.2 billion in insurance claims in 2019 alone.

A local independent agent can help you build a comprehensive business insurance plan that is designed to meet the specific coverage needs of your company.

Experts estimate that 40% of all small businesses are likely to be named in a property damage or general liability lawsuit in the next 10 years. Liability lawsuits can be quite expensive. For example, a typical customer slip and fall injury costs businesses about $20,000. That is one of the reasons that commercial liability insurance is so important.

But liability lawsuits aren’t the only risk faced by businesses. The following is a list of some of the other common hazards American companies have used their business insurance policies to cover against in recent years:

  • Theft and burglary: Average cost per claim is $8,000
  • Water damage and freezing pipes: Average cost per claim is $17,000
  • Wind and hail damage: Average cost per claim is $26,000
  • Fire damage: Average cost per claim is $35,000

Business insurance is designed to cover against a variety of hazards that could potentially impact your business finances. That way, your company can remain profitable, even when disaster strikes.

If your inventory is damaged, if a customer files a liability lawsuit, or if one of your employees is severely injured on the job, a comprehensive business insurance plan can ensure that won't have to worry about how these expenses will affect your business’s bottom line.

Here are some of the ways a well-built business insurance policy package can safeguard your company:

  • Pays for damage to your building or business property
    • Example: A lightning strike ignites a fire, which destroys the warehouse where you store your business inventory.
  • Pays for someone else’s property damage or medical bills
    • ExampleYour business is sued for copyright infringement when your company’s jingle is remarkably similar to one used by another business.
  • Pays for accidents involving company vehicles
    • Example: While on the way to a job site, a construction vehicle owned by your company slides on an icy patch of road and collides with a couple cars.
  • Pays for the treatment of employee injuries and occupational illnesses
    • ExampleAn employee at your manufacturing plant requires skin grafts and an extended hospital stay after suffering second- and third-degree burns due to a malfunctioning machine.
  • Provides a continuation of income during forced temporary closures
    • ExampleA winter freeze causes burst pipes cause the shopping center in which your business is housed. The resultant water damage forces the building to close down for more than a week while repairs are made. You cannot reopen your storefront until the structure of the mall is back up to code.

In addition to the coverage mentioned above, there are many more commercial policies available that you can add to your business insurance coverage package. You can therefore build a policy portfolio that is fully customized to meet each of your company’s specific exposures.How does business insurance work?

A stand-alone business insurance policy is not required by law in Maine. However, some types of commercial insurance that are often included in most company’s business insurance policy packages may be necessary. For example:

  • If your Maine business has at least one employee, you are required by state law to carry workers’ compensation insurance.
  • Many banks will require you to show proof of commercial insurance coverage before they will agree to finance a business loan or line of credit.
  • Construction and other contracting firms are nearly always required to show proof of contractors insurance before they can be hired to do a job.
  • If your business owns a vehicle or fleet of vehicles, you need to carry commercial vehicle liability insurance that meets or exceeds the state’s minimum coverage requirements.

To learn more about coverage that you may have to have for your business, you can talk with a local independent insurance agent.

Business insurance rates are calculated according to several different factors including but not limited to:

  • The size of your business
  • The value of your business assets
  • The number of workers you employ
  • Your company’s various liability exposures
  • The amount and types of coverage you want

A solid business insurance policy package will include several different kinds of policies. Sometimes the way to get the best price for coverage is by having a few different insurance companies providing the policies in your commercial coverage portfolio.

 Don’t worry. When you get your coverage through an independent insurance agent, you will still have only one point of contact for all of your insurance coverage questions and needs.

Yes! There are currently 165 independent insurance agencies in Maine. These experienced agents are available to help you with all of your business insurance coverage needs.

Did you know that independent insurance agents can work with several different insurance providers to help you build a comprehensive and competitively priced business insurance portfolio?

Contact an independent agent near you to ensure that your business is fully covered against all of its various exposures.

How does business insurance work?

Find the Best Insurance in Your City

National Business Insurance Stats

Number of businesses in the US: 27,626,360

Burglary rate per 1,000 residents in the US: 3.76

Auto theft rate per 1,000 vehicles in the US: 2.29

CityNo. businessesBurglaries / 1,000 peopleAuto thefts / 1,000 cars
Auburn1,8142.801.89
Augusta1,9673.401.35
Bangor3,3022.801.89
Bath1,1472.050.24
Biddeford2,0603.491.16
Brewer8850.780.69
Caribou7601.711.71
Lewiston2,4412.460.64
Portland10,0282.521.30
Presque Isle1,1165.110.67
Saco1,7062.450.51
Sanford< 2503.611.09
South Portland3,6252.110.51
Waterville1,2262.991.02
Westbrook1,6882.750.69
  • Portland, ME 
  • Business Insurance Common Coverage Options
  • Property: Portland sees its fair share of inclement weather. Occasionally this city is hit by damaging hailstorms. One of the worst to hit Maine was in nearby Sanford where a car dealership had hundreds of news cars damaged by golf ball sized hail. Hailstorms are just one of many ways that business property can be damaged. Be sure that your company’s assets are fully covered against all potential risks by working with a local independent insurance agent.
  • Commercial auto: Even the best drivers sometimes cause collisions. This is particularly true in the winter when roads in Portland can be slick and hazardous. If your business owns a vehicle or fleet of vehicles, you will be required to carry commercial auto insurance. Rates for these policies can vary according to the number and types of vehicles you are covering, as well as the risk of collisions and of vehicular theft where your employees will be driving. A local independent agent can help you find a comprehensive policy at a competitive price.
  • Workers’ compensation
  • Workers’ compensation insurance covers medical expenses and disability pay for employees who are injured on the job. In addition to protecting your employees, it can also shield your company from liability lawsuits related to these workplace injuries. In Maine, nearly all businesses with at least one employee are required by law to have this insurance. Rates for coverage can vary significantly from one business to the next, depending on the types of jobs your employees do and your company’s overall payroll.


  • Lewiston, ME 
  • Business Insurance Common Coverage Options
  • Property: It is important that you fully insure your business property so that if a major disaster like a fire causes complete destruction of all your company assets, you will have sufficient funds to rebuild and replace quickly. That way, you can soon resume normal business operations without suffering large financial losses. A local independent insurance agent can help you be sure that your coverage levels are high enough.
  • Commercial auto: Several businesses in Lewiston have company-owned vehicles. If your company owns cars, vans, busses, or trucks, you will need to insure them with a commercial auto insurance policy. Doing so can prevent your business from facing large financial losses if one of your drivers causes a serious accident. A local independent agent can help you find a reliable policy at a competitive price.
  • Workers’ compensation
  • Workers’ compensation insurance covers medical bills, disability pay, and other related expenses for workers who are injured while doing their jobs. With few exceptions, it is required of all businesses in Maine that have at least one employee. This insurance protects your employees from financial losses related to work injuries and can also prevent your company from facing expensive lawsuits. Rates for this coverage are assigned according to your company’s overall payroll amount and the types of jobs your workers do.


  • Bangor, ME 
  • Business Insurance Common Coverage Options
  • Property: As a business owner, you have likely invested a lot into your company’s assets including such things as computers, furniture, tools, and supplies. Business property insurance can help cover the cost of repairing or replacing this property if it is lost or damaged due to a covered event like a blizzard or a windstorm. Find a policy and rate that works for your Bangor business by teaming up with a local independent agent.
  • Commercial auto: If your business owns a vehicle or a fleet of vehicles, your company needs the added liability coverage that comes with this required insurance. Your rates will be based on several factors, including the number and types of vehicles you are covering, the risk details about the employees who will be driving them, and the collision rate in your city and the other places these vehicles are likely to be driven.
  • Workers’ compensation
  • Workers’ compensation insurance can pay for medical bills and lost wages if your workers suffer an occupational illness or are injured on the job.  Rates are based on your company’s overall payroll and the potential risks faced by your employees according to their individual job classifications. This insurance is required for nearly all businesses in Maine that have at least one employee.


  • Auburn, ME 
  • Business Insurance Common Coverage Options
  • Property: Your company’s commercial property insurance can cover against damage caused by a number of severe weather events, including severe storms. However, this insurance will not cover against the flood damage that often accompanies torrential downpours. Because Auburn has a significant risk of flood damage, especially for businesses located near Taylor Brook and the Androscoggin River, a local independent insurance agent can help you supplement your business coverage with a commercial flood insurance policy through the National Flood Insurance Program (NFIP).
  • Commercial auto: Whether you are insuring a delivery van or a fleet of construction vehicles, commercial auto insurance can protect your company against losses related to liability risks and property damage. If your business engages in interstate commerce, a local independent agent can ensure that your policy’s coverage meets not only the requirements mandated by the state, but federal requirements as well.
  • Workers’ compensation
  • In Maine, workers’ compensation insurance is required by law if your business employs at least one worker. This insurance not only protects your employees from financial losses related to workplace injuries and occupational illnesses, it can also shield your business from potential liability lawsuits related to these injuries.


  • Biddeford, ME 
  • Business Insurance Common Coverage Options
  • Property: While the property crime rate in Biddeford is lower than the national average, it is among the highest in the state. With about 600 thefts reported every year, it is important that local businesses protect themselves against crime-related losses. A well-built business insurance policy package can cover losses caused by shoplifting, cybercrime, and employee theft as well as the other risks you face as a business owner in this city. A local independent agent can show you how to get all the coverage you need.
  • Commercial auto: Commercial auto insurance can protect your business from facing unmanageable liability costs if one of your drivers causes an accident while operating a company-owned vehicle. Rates can be influenced by driving records of the employees who will be operating the vehicles and by the types of vehicles you are covering. For example, vans and buses used to transport people have high liability risks, as do heavy trucks and vehicles that carry hazardous materials. Learn more by talking to a local independent insurance agent.
  • Workers’ compensation
  • Workers’ compensation insurance is designed to cover the cost of medical treatments, lost wages, and other expenses related to injuries your employees may suffer while doing their jobs. It is required for mostly all businesses that employ at least one person in Maine. Workers' compensation rates are assigned according to your company’s overall payroll, the types of jobs your employees do, and the likelihood that they will be injured while doing them.