Short answer: Maine requires employers to carry workers' compensation. Under Maine's Paid Family and Medical Leave program, employers remit premiums on wages quarterly. Employers with 15 or more covered employees pay the full rate, and employers with fewer than 15 pay a smaller share. Maine's auto minimums are among the highest in the country: 50/100/25 liability, $2,000 medical payments and 50/100 uninsured/underinsured motorist.
This guide is general information for Maine employers and business owners. It isn't legal advice. Agency rules change, so confirm with the agencies linked below.
1. Workers' compensation
Details: is workers comp required in Maine.
2. Maine PFML
Per the Maine Department of Labor, employers remit PFML premiums and wage reports 30 days after each quarter. Per the Department's premium guidance, employers with 15 or more covered employees pay the full combined premium and may deduct up to half from employees. Employers with fewer than 15 pay only the employee portion, which they may deduct in full.
3. Business vehicles
Per the Bureau of Insurance, the minimums are $50,000/$100,000 bodily injury and $25,000 property damage (or a $125,000 combined single limit), $2,000 medical payments, and $50,000/$100,000 uninsured/underinsured motorist. See commercial auto insurance.
State unemployment insurance
Unemployment insurance is the other employer coverage Maine makes mandatory. Per the U.S. Department of Labor's Significant Provisions of State UI Laws, January 2026, Maine employers are covered once you meet the coverage test of 20 weeks or $1,500 in any quarter. The 2026 taxable wage base is $12,000 per employee. Experience-rated employers pay 0.00% to 6.29%, and new employers start at a base rate of 2.23% (higher rates can apply by industry). Register with the state's unemployment tax agency when you hire.
Beyond the mandates
Most other coverage, like general liability, property, professional liability and cyber, comes from contracts, leases and lenders rather than Maine law. See small business insurance by industry or home-based business insurance. For-hire interstate carriers also face federal minimums under 49 CFR 387.9, starting at $750,000.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Maine.
Frequently asked questions
Do small Maine businesses pay PFML premiums?
Employers with fewer than 15 covered employees pay only the employee portion, which can be deducted from pay.
What's Maine's minimum auto insurance?
50/100/25 liability, $2,000 medical payments and 50/100 UM/UIM.
Do Maine employers have to pay for unemployment insurance?
Yes, once covered. The 2026 taxable wage base is $12,000, and new employers start at 2.23%.
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.