What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Maine

When you hire employees in Maine, it is essential to secure the proper insurance coverage to comply with state requirements and protect your business.

Workers' Compensation Insurance

Workers' compensation insurance is mandatory for most employers in Maine. This insurance covers medical expenses and lost wages for employees who suffer work-related injuries or illnesses. As of 2026, businesses with one or more employees generally must carry this insurance.

Unemployment Insurance

Employers in Maine must also register for unemployment insurance through the Maine Department of Labor. This insurance provides temporary financial assistance to workers who lose their jobs through no fault of their own. It is funded by employer payroll taxes and requires accurate payroll reporting and recordkeeping.

Additional Insurance Considerations

• General liability insurance is not required by law but is recommended to protect your business from third-party claims.
• Disability insurance is not mandated in Maine, but some employers may choose to offer short-term disability benefits.

Operational Tips

• Ensure timely registration with the Maine Workers’ Compensation Board and the Department of Labor.
• Maintain accurate employee classification to avoid insurance premium errors.
• Automate payroll and reporting processes to stay compliant with insurance and tax obligations.
• Review insurance policies annually to adjust coverage based on workforce changes.