Maine Workers' Compensation Insurance

Your Guide to Workers' Comp Insurance in Maine

Find the right workers' comp insurance policy for you.

Maine Workers Compensation Insurance

In recent years, Maine has paid out $978.6 million in workers' comp claims. Work-related injuries happen every day, from trips and falls to life-altering injuries, but having the right workers' comp coverage can help protect your business. For help navigating workers comp insurance coverage, find a local independent agent.

Workers' Compensation Coverages/Non-Coverages in Maine

Employees need help paying for medical bills when they get injured on the job. Workers’ compensation insurance is designed to protect employees from the costs of workplace injuries, and protect employers from lawsuits and other unpredictable costs.

Here's a closer look at what workers' compensation covers and does not cover in the state of Maine.

Workers' comp covers the following:

  • Traumatic injuries
  • Repetitive-type injuries
  • Certain mental injuries
  • Occupational diseases

Real-life example of coverage:

A waiter at a Maine restaurant gets a severe burn from a hot plate. The employee gets taken to the hospital to be treated for their injuries. A workers' comp policy would help pay for any related medical treatments and other costs.

Workers' comp does not cover:

  • Employee illnesses or injuries sustained outside of work
  • Accidents that occur while an employee is intoxicated
  • Intentional employee injuries to themselves at the workplace
Workers' Compensation Coverage Covered Not Covered
Traumatic injuries
Repetitive-type injuries
Certain mental injuries
Occupational diseases
Employee illnesses or injuries sustained outside of work
Accidents that occur while an employee is intoxicated
Intentional employee injuries to themselves at the workplace

An independent insurance agent can further explain what workers' compensation insurance both covers and excludes in Maine.

Why Do You Need Workers Compensation Insurance in Maine?

Workers' comp insurance is a necessity for most businesses for several reasons. For starters, it's actually required by law in most states, if your business has employees. Workers' comp also provides critical protection for your business against financial losses.

For most states, workers' comp is required immediately upon hiring a new employee. You'll want to be equipped with coverage before any of your workers get injured or ill on the job so that your business won't be held financially liable. Coverage doesn't kick in for workplace incidents until after you purchase a policy.

What Consequences Could You Face if You Don’t Have Workers’ Compensation in Maine?

If your business doesn't carry workers' comp to protect your team, you could end up facing legal consequences like fines or jail time. Though some businesses think of workers' comp as optional or unnecessary due to the nature of their operations, coverage can provide important financial protection in case of an incident.

Workers' comp is mandatory in most states, including Maine, if your business has one or more employees. Businesses in Maine without the right workers' comp insurance can be subject to civil penalties of up to $10,000, or up to 108% of the annual premium they otherwise would have paid.

Maine Workers’ Compensation Laws

Maine workers’ compensation insurance provides benefits for occupational injuries or diseases suffered by an employee, regardless of who is at fault. Workers’ compensation insurance in Maine is the exclusive remedy for the coverage of work-related injuries and illnesses. State law requires almost all public and private employers to have workers’ compensation coverage. 

The Maine Workers’ Compensation Board may impose penalties for businesses that go without coverage, and failure to have coverage does not mean employers aren't responsible for compensating worker injuries or illnesses. These employers may also be guilty of a Class D crime, and be subject to civil penalties and revocation or suspension of their corporate charter or certain other licenses. 

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How Much Does Maine Workers’ Compensation Insurance Cost? 

Workers’ compensation insurance always costs more for industries and occupations that are presumed to have a higher risk of occupational injuries or illnesses. Cost is determined by how many employees you have, the types of jobs they perform, and your history of accidents and workers’ compensation claims. 

In Maine, the National Council for Compensation Insurance (NCCI) assigns classification codes for each occupation. Each class code is given a recommended base rate for workers’ comp. For the premium, an employer’s annual payroll at the start of the policy period is divided by 100 and then multiplied by the base rate. 

Consider the following example:

  • Classification Code 8380: Auto Shop
  • Base Rate: $3.16
  • Employer payroll (example): $100,000
  • Premium calculation: $3.16 per $100 of employer payroll (or 3.16% of payroll)
  • Estimated annual premium for sample auto shop: $3,160  

Most employers have employees in more than one classification. An electrician may employ a variety of office workers in addition to electricians. All of an employer’s class codes and related premiums are combined to determine the full Maine workers’ compensation premium. 

Maine Workers’ Compensation Rate Examples

Maine workers’ compensation rates are higher than the national average. They may vary among insurance companies based on underwriting standards and credits offered by individual insurers.  

Here are some sample base rates (rate per $100 of employer payroll):

  • 0042 Landscaping: $7.20
  • 5183 Plumbing: $4.50
  • 5427 Carpentry: $4.95
  • 8017 Retail Store: $1.62
  • 8810 Clerical: $0.29
  • 9082 Restaurant: $1.31

Workers' Comp Cost Per Employee in Maine

The cost of workers' comp coverage per employee increases with higher company payrolls, as these businesses cost more to insure. Check out a breakdown of how workers' comp costs vary by payroll range in each specific industry below.

Annual Workers' Comp Cost Per Employee

Industry Lower Cost Medium Cost Upper Cost
Construction $1,674 $3,208 $12,275
Finance and Insurance $551 $995 $3,643
Hotels / Motels $404 $908 $3,837
Manufacturing and Food Production $716 $1,360 $5,171
Professional and Technical Services $518 $1,024 $4,007
Real Estate $93 $185 $726
Restaurants and Taverns $164 $366 $1,540
Retail Trade $316 $606 $2,318
Transportation and Warehousing $1,233 $2,429 $9,467

Businesses that have a greater track-record of safety and fewer accidents pay less for their coverage. Insurance companies have complex formulas to reset your rates after an accident, likely leading to a noticeable spike in your premiums.

Best Workers' Comp Companies in Maine

Workers' comp is available from many different insurance companies in Maine. Here are just a few of our top picks for quality workers' comp insurance carriers.

Top Workers' Compensation Insurance Companies Star Rating
Accident Fund 
Main Street America
Liberty Mutual
4.5/5 star rating
Builders & Tradesmen's Insurance
4.5/5 star rating
Travelers
5 star rating

An independent insurance agent can help you look into these workers' comp insurance companies and get matched to the carrier who best meets your needs at the most affordable rate.

Top 6 Most Common Workers' Comp Claims/Injuries

Top 6 Most Common Workers Comp Claims
  1. Lacerations: In other words, deep cuts. These can happen in any industry, but are especially common in the restaurant and manufacturing fields. 
  2. Sprains/strains: Again, these injuries can happen in any industry, but are especially common in job settings where lots of twisting and turning is required.
  3. Contusions: In other words, bruises and other marks on the skin caused by impact. Contusions often happen from dropped objects, improper lifting, or colliding with an object.
  4. Burns: Burns can happen in any industry that has a heat source, including restaurants, construction businesses, bakeries, and more.
  5. Eye injuries: Eye injuries are most frequent in industries that require chemicals, including manufacturing, painting, and construction.
  6. Fractures: Fractures can happen to employees anywhere, but are especially common in industries that require a lot of movement and the use of heavy machinery.

Why Are Independent Insurance Agents Awesome?

It’s simple. Independent insurance agents simplify the process by shopping and comparing insurance quotes for you. Not only that, but they’ll also cut the jargon and clarify the fine print, so you know exactly what you’re getting.

There’s no business too small for our independent insurance agents. They have access to multiple insurance companies, ultimately finding you the best workers' comp coverage and competitive pricing while working for you.

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TrustedChoice.com Article | Reviewed by Paul Martin

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https://legislature.maine.gov/statutes/39-A/title39-Asec324.html#:~:text=The%20employer%20is%20liable%20to,secure%20coverage%2C%20whichever%20is%20larger%2C

https://www.employers.com/blog/2019/7-common-workers-compensation-claim-injuries/