If your business is a Maine corporation, a C-corp or an S-corp, and it has any employees, yes, it must carry workers compensation insurance from the first worker under 39-A M.R.S. section 401. Here the owner rule runs opposite to LLCs and partnerships: an executive officer of a for-profit corporation is treated as a covered employee and is on the policy by default. An officer can opt out only if they are a bona fide owner of at least 20 percent of the voting stock and file the state waiver, which the Board must approve. Having employees, including working owner-officers, is what makes coverage mandatory.
Who this is for: Owners, officers, and directors of a Maine for-profit corporation, from a small S-corp with a few employees to a closely held company whose owners draw a salary.
The short version
- A Maine corporation with any employees must carry workers comp; there is no headcount minimum.
- Executive officers of a for-profit corporation are employees and are covered by default when the company carries coverage.
- An officer can waive out only if they own at least 20 percent of the voting stock.
- The waiver is Form WCB-2C, and it is not valid until the Workers' Compensation Board approves it.
- Regular W-2 employees are always covered; the opt-out choice belongs only to qualifying owner-officers.
How officers and directors are treated
Maine treats executive officers of a for-profit corporation as employees, so when the corporation carries coverage the officers are on the policy by default. This is the reverse of how sole proprietors, partners, and LLC members are handled, and it catches many owners off guard. To step off the policy, an officer must clear two bars: they have to be a bona fide owner of at least 20 percent of the outstanding voting stock, and they have to waive their benefits in writing on Form WCB-2C. That waiver does not take effect on its own; it is not valid until the Board approves it. A minority officer who owns less than 20 percent cannot waive out and stays covered.
Covered, excluded, or required
| Who | Default on a corporate policy | How it changes |
|---|---|---|
| W-2 employee | Covered | Employees are covered by the policy |
| Officer who owns at least 20 percent | Covered by default | May file an approved Form WCB-2C to opt out |
| Officer who owns less than 20 percent | Covered | Cannot waive out; stays on the policy |
| Corporation with any employees | Coverage required | Every employee must be covered from day one |
Why carrying a policy keeps you out of court
The corporate form shields shareholders from many business debts, but it does not by itself answer an injured worker. If the corporation carries no comp when required, an injured employee can sue in civil court once the company loses its exclusive-remedy protection. Maine also reaches the people who run the company: any agent of the corporation with primary responsibility for obtaining coverage can be held personally liable, and the corporation can be administratively dissolved or lose its authority to do business in the state. Carrying a policy makes comp the employee's exclusive remedy, which generally blocks that lawsuit and that personal exposure.
A South Portland example
Illustrative, not a quote. A South Portland heating and cooling company is an S-corp with two owner-officers who each own more than 20 percent and both work in the field, plus six technicians. Because they are executive officers, both are covered by default, and they decide to stay on the policy rather than file waivers, since their rooftop and attic work carries real injury risk. They keep the six technicians covered too. When a technician falls from a ladder, the injury is covered and the company keeps its exclusive-remedy protection. The owners ask us to confirm the technicians are rated on the correct kind of work so the premium is not inflated. See our workers comp for HVAC contractors page.
Real questions Maine owners ask
Does my Maine corporation have to carry workers comp?
If it has any employees, yes, from the first worker. That includes working owner-officers, who are covered employees by default. There is no headcount minimum in Maine.
Am I covered as an owner-officer?
By default, yes. Maine treats an executive officer of a for-profit corporation as a covered employee, so you are on the policy unless you qualify to waive out and the Board approves your waiver.
How do I take myself off the policy as an officer?
You must own at least 20 percent of the voting stock and file Form WCB-2C to waive your benefits. The waiver is not valid until the Workers' Compensation Board approves it.
Can a minority officer opt out of coverage?
No. Only a bona fide owner of at least 20 percent of the voting stock can waive out. An officer who owns less than that stays covered under the corporate policy.
Are my regular employees covered if I have a policy?
Yes. W-2 employees are covered by the corporate policy. The opt-out choice applies only to qualifying owner-officers, not to rank-and-file staff.
Does incorporating protect me from an injured worker?
Not by itself. Without required comp, the corporation can be sued, and any agent responsible for getting coverage can be held personally liable, so the corporate shield does not cover this.
Should I stay on the policy or file the waiver?
It depends on whether you do physical work and want your own injuries covered. If you do hands-on work, staying on covers you; if you only run the office and own at least 20 percent, waiving keeps your pay off the premium.
Why Maine owners choose Morrow
- We shop the right market for you. In Maine you buy workers' comp on the open market from any carrier licensed in the state, with the state-created MEMIC competing alongside private insurers and also standing as the guaranteed insurer of last resort, so we can shop your price freely and still have a fallback if you are hard to place.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Maine guides
Every Maine business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Maine (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Workers comp vs employers liability
- What workers comp does not cover
- Maine HVAC workers comp
This guide is general information, not legal advice. Maine rules and penalty amounts can change, so verify current requirements with Maine Workers' Compensation Board (WCB) or a licensed advisor before you rely on them. Last updated: July 2026.