If you have even one employee in Maine, yes, you need workers compensation insurance. Maine requires every private employer to secure coverage from the very first worker under 39-A M.R.S. section 401, with no minimum headcount, no payroll minimum, and no exception for part-time or seasonal staff. The real questions are how owners are treated and how to buy it, not whether the rule applies to you.
Who this is for: Any Maine employer, from a brand-new business making its first hire to an established company double-checking the rules for its mix of staff.
The short version
- Coverage is required from employee number one; there is no headcount trigger and no payroll minimum.
- Part-time, seasonal, and temporary workers all count toward the rule.
- Owners are handled by type: sole proprietors, partners, and LLC members are left out, while a for-profit corporate officer is in by default.
- Going without coverage exposes you to a penalty of up to 10,000 dollars or 108 percent of the premium owed, a Class D crime for a knowing violation, and lawsuits.
- You buy from private carriers or MEMIC, the state-created insurer that is also the guaranteed backstop if you are declined.
Who counts as an employee
Maine defines an employee broadly, and coverage attaches at the first one. Full-time, part-time, seasonal, and temporary workers all count. There are only a few narrow carve-outs, most of them tied to farm, aquaculture, and domestic work rather than to how many people you employ.
| Worker type | Counts toward the mandate? | Notes |
|---|---|---|
| Full-time W-2 employee | Yes | Coverage required from day one |
| Part-time or seasonal worker | Yes | No hours or headcount exception |
| Family member you employ | Usually yes | A spouse, parent, or child of an owner can waive out with an approved form |
| Domestic servant in a private home | No | Private-home domestic work is outside the Act |
| Seasonal or casual farm and aquaculture labor | Sometimes no | Exempt only if the employer carries set liability and medical limits |
How Maine treats business owners
Owners are the one place the answer changes with your structure. A sole proprietor, a partner in a partnership, and a member of an LLC are all left out of the definition of employee, so the state does not require them to cover themselves, and they do not even file a form to be left out. They still must cover any non-owner staff. A for-profit corporate officer runs the other way: a working officer is treated as a covered employee by default and stays on the policy unless they own at least 20 percent of the voting stock and file the state waiver, Form WCB-2C, which is not valid until the Board approves it. Either way, the moment you have one non-owner employee, the coverage duty is on.
Why the rule is strict here
Maine backs the mandate with real teeth. An employer that fails to secure coverage can be charged a penalty of up to 10,000 dollars, or 108 percent of the premium it should have paid, whichever is larger, and a knowing violation is a Class D crime. A corporation can be administratively dissolved and the person responsible for getting coverage can be held personally liable. On top of that, an injured worker at an uninsured business can sue in civil court, because carrying a policy is what makes comp the worker's exclusive remedy and keeps that lawsuit off the table.
An Augusta example
Illustrative, not a quote. An Augusta cafe owner hires two counter staff and one part-time weekend baker and assumes part-timers might not count until she has more of them. In Maine they count from the first one, so she needs a policy right away. She puts coverage in place before anyone starts, and when the weekend baker burns a hand on a hot tray, comp pays the medical bills and part of the lost wages. Because she was insured, the injury is handled as a comp claim rather than a lawsuit she would have to defend, and we make sure her cafe payroll is rated on the right kind of work. See our workers comp for restaurants page for the trade detail.
Real questions Maine owners ask
Is workers comp legally required for my Maine business?
Yes, if you have any employees. Maine requires coverage from the first worker under 39-A M.R.S. section 401. There is no minimum headcount, no payroll minimum, and no part-time or seasonal exception.
How many employees before I need workers comp in Maine?
One. Maine attaches the requirement to your very first employee, so there is no number you can stay under. A single part-time or seasonal hire is enough to make coverage mandatory.
Do part-time or seasonal workers count in Maine?
Yes. Part-time, seasonal, and temporary workers are all employees for coverage. Maine does not exempt them, so you cannot avoid the requirement by keeping people part-time.
Do I need workers comp for family members I employ?
Usually yes. A relative you employ counts like any worker, though a spouse, parent, or child of an owner can waive out by filing an approved state form. Other family employees must be covered.
Do I have to cover myself as the owner?
It depends on your structure. Sole proprietors, partners, and LLC members are left out and do not have to cover themselves, while a working for-profit corporate officer is covered by default and must own at least 20 percent to waive out.
What if my workers are independent contractors?
Labels do not settle it. Maine uses a five-part test plus extra factors to decide who is truly independent, and on a construction site an uninsured sub's workers can become your employees.
What happens if I do not carry it?
You can face a penalty of up to 10,000 dollars or 108 percent of the premium owed, a Class D crime for a knowing violation, and a civil lawsuit from an injured worker once you lose the exclusive-remedy protection.
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)
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- 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)
- Hiring your first employee: what changes
- What workers comp does not cover
- Maine restaurant 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.