If your Maine LLC has any employees, yes, it must carry workers compensation insurance from the first hire, because Maine requires coverage from employee number one under 39-A M.R.S. section 401. If it is just you as a member with no employees, the LLC generally is not required to carry a policy, because Maine does not treat an LLC member as an employee and does not even ask members to file a waiver form. The number of members does not change the rule; your employees do.
Who this is for: Owners of a Maine LLC, whether a single-member LLC with no staff, a multi-member LLC, or an LLC running a payroll of W-2 employees.
The short version
- An LLC with even one employee must carry workers comp in Maine; there is no headcount threshold.
- LLC members are not required to be covered and do not need to file any waiver form to be left out.
- Your W-2 employees are always covered; the members are the part that is optional.
- A spouse, parent, or child of a member who works for the LLC can waive their own coverage with an approved state form.
- Clients and general contractors routinely require proof of coverage before your LLC can start work.
How Maine treats LLC members
Maine writes LLC members out of the workers comp system by default. State guidance is blunt about it: owners of limited liability companies are not required to be covered by workers compensation insurance and do not need to fill out waiver forms. So a member is not their own employee and the state does not force coverage on them, and unlike a corporate officer there is no form to file to stay out. What the exemption does not do is cover your own on-the-job injuries. If you want that protection, you rely on other coverage or ask whether a policy can add you; doing nothing simply keeps your own pay off the policy.
What applies to your LLC
| Your LLC setup | Is comp required? | What owners and staff should know |
|---|---|---|
| Single-member, no employees | No | You are left out as a member with no form to file |
| Multi-member, no W-2 employees | No | Members are left out; your own injuries are not on the policy |
| Any LLC with W-2 employees | Yes | Employees must be covered from day one |
| LLC that subcontracts on a construction site | Often by contract or by law | The hiring contractor usually requires proof, and construction rules can pull in uninsured labor |
Left out is not the same as protected
Because members are left out by default, doing nothing keeps your own pay off the policy and out of the premium. The trade-off is that your own on-the-job injuries are not paid by comp. Many owner-run LLCs cover only their employees and rely on health coverage or a separate policy for the owners, which keeps the premium down while still protecting the business from an employee-injury lawsuit. The limited liability in LLC shields your personal assets from many business debts, but it does not by itself answer an injured employee, which is exactly what comp is built to handle.
A Lewiston example
Illustrative, not a quote. A two-member electrical contracting LLC in Lewiston runs the business with one W-2 apprentice. The members are left out of the comp system by default, with no form to file, so they cover only the apprentice rather than putting their own pay on the policy. When a builder they want to work for requires proof of coverage, the LLC already has a policy and can produce a certificate the same day. If the apprentice is hurt pulling wire, the injury is covered and the LLC keeps its protection from being sued over the injury (the exclusive remedy) instead of facing a negligence claim. We make sure the electrical work is rated correctly so the price is fair. See our workers comp for electricians page for more.
Real questions Maine owners ask
Does my Maine LLC have to carry workers comp?
If it has any employees, yes, from the first hire. If it is only members with no employees, coverage generally is not required, because Maine does not treat an LLC member as an employee.
Am I covered as an LLC member?
Not by default. Maine leaves LLC members out of workers comp, so your own injuries are not on the policy. If you want that protection, ask whether a carrier can add you; the exemption itself does not cover you.
Do I need to file a waiver to be left out as a member?
No. This is where Maine differs from corporate officers. LLC members are not required to be covered and do not need to fill out any waiver form to stay out of the system.
Do I need comp for a single-member LLC with no employees?
Usually not, because there is no one the state requires you to cover. You are left out as a member, though your own on-the-job injuries are not paid by comp unless you arrange coverage for yourself.
Does having W-2 employees change things for my LLC?
Yes. Even one W-2 employee makes coverage mandatory from day one. The policy covers your employees and gives the LLC exclusive-remedy protection, so an injured worker generally cannot sue the business.
Can a family member who works for my LLC opt out?
Yes, in a narrow case. A spouse, parent, or child of an LLC member who works for that LLC can waive their own workers comp benefits by filing the state form, which is not valid until the Board approves it.
Does the limited liability of an LLC protect me from an injured worker?
Not on its own. The LLC structure shields your personal assets from many business debts, but an injured employee is a separate exposure. Without workers comp, the business itself can still be sued.
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'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)
- Do sole proprietors need workers comp?
- What workers comp does not cover
- Maine electrician 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.