Short answer: Yes for nearly every private employer. Maine requires every private employer—including an independent contractor who hires and pays employees—to secure workers' compensation by buying a policy or qualifying as a self-insurer. There is no general employee-count exemption. Domestic and farm exceptions apply only when specific liability insurance coverage is maintained.
The private-employer rule
Section 401 opens with a broad mandate: every private employer is subject to the Maine Workers' Compensation Act of 1992 and shall secure payment of compensation. A person engaged in harvesting forest products, even if not employed by a private employer, must also secure coverage for themselves individually when they meet the employee definition in §102.
An employer who has not secured compensation loses the common-law defenses listed in §103 if a worker sues for a work injury. That worker may instead claim compensation under the Act from the uninsured employer.
Domestic and agricultural exceptions
Section 401 lists employers who are not liable to secure compensation for certain employees (and who keep the §103 defenses for those workers):
- Domestic service employees.
- Seasonal or casual agricultural or aquacultural laborers, if the employer keeps employer's liability insurance of at least $25,000 total limits and medical-payment coverage of at least $5,000. "Casual" means occasional or incidental; "seasonal" tracks planting through harvest.
- Other agricultural or aquacultural laborers, if the employer keeps liability insurance of at least $100,000 multiplied by the number of full-time-equivalent agricultural or aquacultural laborers, plus at least $5,000 medical payments, and either has six or fewer concurrently employed agricultural/aquacultural laborers or meets the statute's other listed payroll test.
Those exceptions are narrow. Most restaurants, shops, contractors and offices fall under the general private-employer rule from the first hire.
How to secure coverage
Under §403, assenting employers insure through an authorized workers' compensation insurer or qualify as self-insurers under Board and Superintendent rules. Nonresident employers whose employees work in Maine must obtain coverage from an insurer or self-insurer authorized in Maine unless a listed exemption applies.
Safety-plan surcharge
Section 401 also ties high experience ratings to workplace health and safety plans. Employers that receive an experience rating of 2 or more in a policy year must undertake a workplace health and safety program. Failure to complete it can bring a 10% surcharge on the workers' compensation premium (or imputed premium for self-insurers), credited to the Safety Education and Training Fund.
Forest-product harvesters
Section 401 has a special rule for people engaged in harvesting forest products. Even when they are not employed by a private employer, they must secure compensation individually if they meet the employee definition in §102, subsection 11, paragraph B-1. Logging and related harvest work is a frequent compliance trap for owner-operators who assume a sole-proprietor label is enough.
Board and Bureau resources
The Maine Workers' Compensation Board oversees claims and compliance under Title 39-A. The Bureau of Insurance publishes employer guidance on securing coverage. When an experience rating hits 2.0 or higher, expect outreach about a workplace health and safety plan and possible premium surcharge if the plan is not completed.
Independent contractors who hire help
Section 401 treats an independent contractor who hires and pays employees as a private employer. A framing crew lead who brings two helpers onto a job is not excused from securing compensation merely because a general contractor also has a policy. Certificates should flow both ways: the GC verifies the sub's coverage, and the sub verifies coverage for anyone it puts on the payroll.
What "secure the payment of compensation" means
Buying a policy is the usual path. Self-insurance under §403 requires meeting Board and Superintendent financial standards that most small employers will not attempt. Either way, the duty attaches to the employment relationship in Maine, not to a voluntary decision to "opt into" the Act. If you have employees and no exemption, you are already subject to Title 39-A.
Bottom line
Maine treats workers' compensation as the default for private employers. Confirm any farm or domestic exception in writing with counsel or the Workers' Compensation Board before operating without a policy. See our workers' compensation insurance overview.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Maine.
Frequently asked questions
Is workers' comp required in Maine?
Yes for nearly every private employer. Section 401 requires securing compensation by policy or self-insurance for all employees.
Is there a minimum employee count for Maine workers' comp?
No general headcount minimum. Limited domestic and agricultural exceptions apply instead.
Are domestic employees covered by Maine workers' comp?
Employers of employees engaged in domestic service are not required to secure compensation for those workers under §401.
What if a Maine employer has no workers' comp policy?
The employer loses certain common-law defenses in a civil suit, and the employee may claim compensation under the Act from the employer.
Must out-of-state employers cover Maine workers?
Nonresident employers whose employees work in Maine must obtain coverage from a Maine-authorized insurer or self-insurer unless exempt.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.