If you skip required workers compensation in Maine, the consequences are serious and they stack. The state can charge a civil penalty of up to 10,000 dollars, or up to 108 percent of the premium you should have paid, whichever is larger, and a knowing violation is a Class D crime. A corporation can be administratively dissolved, the person responsible for getting coverage can be held personally liable, and an injured worker can sue you once you lose the exclusive-remedy protection. Coverage is required from your first employee under 39-A M.R.S. section 401, so these are the risks of going without it.
Who this is for: Maine owners weighing the risk of going without workers comp, or trying to understand what enforcement really looks like.
The short version
- The civil penalty runs up to 10,000 dollars, or 108 percent of the premium you should have paid, whichever is larger.
- Knowingly going without required coverage is a Class D crime.
- A corporation can be administratively dissolved and a business can lose its authority to operate in Maine.
- The person with primary responsibility for getting coverage can be held personally liable.
- An uninsured business loses its exclusive-remedy protection, so an injured worker can sue in civil court.
What Maine can do to an uninsured employer
Maine treats failure to carry required coverage as a serious violation, not a paperwork slip. The penalty is designed to be larger than the premium you skipped, so the math almost never favors going without.
| Consequence | What it means |
|---|---|
| Civil penalty | Up to 10,000 dollars, or up to 108 percent of the premium you should have paid, whichever is larger |
| Criminal charge | A knowing failure to secure coverage is a Class D crime |
| Entity consequences | A corporation can be administratively dissolved; a business can lose its authority to operate |
| Personal liability | The agent responsible for obtaining coverage can be held personally liable |
| Lost exclusive remedy | An injured worker can sue you in civil court instead of filing a comp claim |
The lawsuit behind the penalty
Carrying comp is what makes it the worker's exclusive remedy, meaning an injured employee's claim goes through the comp system instead of into a lawsuit. Drop that coverage and you lose the protection: an injured worker can sue you in civil court, and you are also still on the hook to pay what the comp system would have paid. On top of the state penalty, the business remains liable for the actual medical bills and lost wages of the injury. So even a single serious claim while uninsured can dwarf years of premium.
Where a stop-work order fits
Maine does have a stop-work power, but it is specific to construction. On a construction site, after a hearing, the Workers' Compensation Board's executive director can order work stopped when a hiring agent or construction subcontractor has knowingly failed to secure coverage. Outside construction, Maine does not use a general stop-work order; instead it relies on the civil penalty, the criminal charge, dissolution, and personal liability described above. There is also a separate, smaller penalty of up to 200 dollars a day that applies when an employer or insurer fails to pay ordered benefits on time; that is a late-payment penalty, not the fine for going uninsured, so do not confuse the two.
A Presque Isle example
Illustrative, not a quote. A Presque Isle roofing company skips workers comp for a season to save on premium. A state review flags the gap, and the company faces a civil penalty of up to 10,000 dollars or 108 percent of the premium it should have paid, whichever is larger, plus a criminal charge because the owner knew coverage was required. Before that even resolves, a roofer falls and is seriously hurt; because the company was uninsured, it loses its exclusive-remedy protection, the worker can sue, and the business still owes the medical bills and lost wages. The premium the owner tried to avoid turns out to be a fraction of the total cost. We help owners get covered quickly so this never starts. See our workers comp for roofers page.
Real questions Maine owners ask
What is the penalty for not having workers comp in Maine?
The state can charge a civil penalty of up to 10,000 dollars, or up to 108 percent of the premium you should have paid, whichever is larger. A knowing violation is also a Class D crime.
Is going without workers comp a crime in Maine?
It can be. Knowingly failing to secure required coverage is a Class D crime in Maine, on top of the civil penalty and the other consequences.
Can Maine shut down my business for not having coverage?
Only in construction. Maine's stop-work order is construction-specific and issued after a hearing. Outside construction, the state uses fines, criminal charges, dissolution, and personal liability instead.
Can I be personally liable if my company has no coverage?
Yes. The agent of a corporation or business with primary responsibility for obtaining coverage can be held personally liable, so the business structure does not shield that person here.
What happens if an uninsured worker gets hurt?
You lose the exclusive-remedy protection, so the worker can sue you in civil court, and the business still owes what comp would have paid, including medical bills and lost wages.
Is the 200 dollars a day fine the same as the coverage penalty?
No. The up to 200 dollars a day figure is a separate late-payment penalty for failing to pay ordered benefits on time. The penalty for going uninsured is the 10,000 dollars or 108 percent figure.
Is the penalty cheaper than just buying a policy?
Almost never. The civil penalty, a criminal charge, dissolution, personal liability, and the cost of the actual injury far exceed the premium, which is why going without rarely makes financial sense.
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?
- 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?
- 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)
- What workers comp does not cover
- Workers comp vs employers liability
- Maine roofer 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.