Starting a business is a dream for many people, but only a few can be successful. Creating your own company is not just mentally and physically laborious; it can also be financially exhausting because of multiple legal compliance requirements.
One of these requirements may be providing comprehensive Workers’ Compensation for your employees. If you’re a small business owner or a startup entrepreneur, purchasing an insurance policy for your team can be a burden if you have limited financial resources.
With PolicySweet®, you can easily find a Workers’ Compensation insurance policy that can fit your budget. We can also provide personalized coverage solutions depending on your needs, business nature, and budget. Call us now and get your free and instant insurance estimation.
How Does Workers’ Comp Work in Maine?
According to the state’s Department of Professional & Financial Regulation, employers across industries and businesses should provide their employees with Workers’ Compensation. This coverage can provide financial security to employees when a workplace accident occurs.
The state government may impose hefty penalties on employers and business owners who fail to provide coverage to their employees. This can include:
- A possible conviction of a class D civil crime
- A fine of up to $10,000 or 108% of the premium amount during the period without coverage, whichever is larger
- A potential revocation of business and professional license or both
Who Is Exempt From Buying Workers’ Compensation Insurance in Maine?
Providing Maine Workers’ Compensation insurance can be an inherent and ethical responsibility for most employers. However, certain business types and industries are exempted from this requirement:
- Sole proprietors: Owners of a business with no employees might not be required to purchase a Workers’ Compensation insurance policy.
- Employers of domestic workers: Those who hire personal domestic workers — such as cleaning personnel and caretakers — could be exempt from providing Workers’ Compensation insurance.
- Family member employees: If all or a majority of the employees in a business are related to the owner, the business may not be required to have Workers’ Compensation insurance.
- Independent contractors: Individuals working as independent contractors may not be required to have Workers’ Compensation insurance.
Employers in the agricultural sector have a special exemption depending on the size of their business. Agricultural employers should maintain at least $25,000 in employers’ liability insurance with at least $5,000 dedicated to medical coverage.
What Benefits Are Included Under Workers’ Compensation in Maine?
The following benefits could be included in Workers’ Comp insurance coverage.
Wage Replacement
If an employee missed work hours because of an injury sustained in the workplace, they can recover lost wages. However, there may be a limit on how much compensation an injured employee can recover from Workers’ Compensation.
Medical Treatment
The insurance policy can cover medical treatment costs, including the services of a physician or other healthcare practitioners. The insurance provider can pay for the employee’s medical bill if it’s related to their injury.
An injured employee’s compensation varies depending on the injury’s severity, their average weekly salary, and if they can return to their previous role or have to change their profession.
Rehabilitation Treatment
Suppose an employee sustains an injury preventing them from using their limbs, performing daily tasks, or preventing them from living their life normally.
In that case, the Workers’ Compensation insurance policy could cover rehabilitation treatments. In some cases, the rehabilitation benefit can also be included under the medical treatment coverage, depending on the policy.
Vocational Benefits
As mentioned, some injuries are too severe, which could prevent an employee from returning to their previous job role.
Suppose the injury is determined to be catastrophic and permanent. In that case, employers should provide vocational benefits — such as job retraining or career advancement assistance — to help the employee return to the workforce.
Death Benefits
In the event of a fatal workplace injury, employers should provide death benefits for their surviving family members. The insurance policy can cover the costs of funeral expenses, burial costs, and even wage replacement.
Help Ensure the Security of Your Employees With Comprehensive Workers’ Compensation Insurance
Many people see Workers’ Compensation as a benefit dedicated to employees, but it can also provide several advantages for employers. As an employer, here are some reasons why you may want to secure Workers’ Compensation for your employees.
Help protect your business from legal complications:
As shown in the sections above, the penalty for not providing Workers’ Compensation insurance to employees can come at an expensive cost. Securing a Workers’ Compensation policy early on can save your business from legal complications.
Help gain mental peace:
It can be hard to see your employees in distress after an injury or illness due to their work. With Workers’ Compensation insurance, you can have “peace of mind” knowing they could be properly taken care of financially during recovery.
Help protect your financial assets:
Without Workers’ Compensation, you could be obligated to support your employee’s recovery out-of-pocket. The expenses of a workplace injury or illness can add up quickly and strain your business’s finances.
Help improve employee morale:
Providing a Workers’ Compensation policy to your employees could boost their morale and show that you care about them. Employee confidence and loyalty can be essential to help keep your business running in the long run.
Get Your Instant Quote With PolicySweet Today
Finding a suitable Workers’ Compensation insurance provider in your state can be challenging if you’re a small business owner. That’s where PolicySweet can step in. Our mission is to make affordable and competitive Workers’ Compensation accessible for businesses with a limited budget.
With our easy-to-follow, three-step process, you can quickly get an estimate for your Maine Workers’ Compensation coverage for free. Start your process today and provide a comprehensive financial safeguard for your business and employees.
Please Note: State-specific information is subject to change at any time. Always consult with your state’s official information and resources for the most accurate information.