These questions are provided by the Maine Bureau of Insurance as a general guidance. These questions and answers are not intended to give specific information relating to particular situations nor are they intended to provide legal advice.
For more information, visit our section on Workers' Compensation.
What is workers' compensation?
Workers' compensation provides for benefits for occupational injuries or disease suffered by an employee, regardless of fault. The benefits include payment of medical services and lost wages, subject to a limit set by law. Workers' compensation is the exclusive remedy for the coverage of work related injuries by the employer.
The law requires almost all public and private employers to have workers' compensation coverage. The law defines employers as "private employers, public employers, water districts, other quasi-public corporations, municipal school committees, school union committees, and design professionals."
As a small business owner you have two ways to secure workers' compensation insurance. You can obtain it from a licensed producer who sells property and casualty insurance and who specializes in or is familiar with business insurance or by joining a self-insured group.
The cost of workers' compensation insurance is based on the hazards associated with the type of jobs related to the employers' business classification. Each business has a major classification or governing class that identifies it as a certain type of business. The classifications are designed so that job costs are determined by multiplying a rate that is assigned to a specific classification for every one hundred dollars of payroll to the payroll in that classification. The final cost is usually impacted by the employer's loss history.
What agency should I contact if an insurer is not making payments on my workers' compensation claim?
The Workers' Compensation Board investigates complaints related to benefit payments on individual claims.