Insurance in Maine

Maine does not require most contractors to carry a specific insurance amount as a condition of state trade licensure. The real market (general contractors hiring you, commercial customers, larger residential customers, municipal permit offices) will require proof of coverage before you step on site. Minimum coverages a new Maine trades shop should expect to carry: - General liability. $1M per occurrence / $2M aggregate is the typical commercial job requirement. Covers bodily injury and property damage arising from your work. - Workers' compensation. Under the Maine Workers' Compensation Act at 39-A M.R.S.A. §401, nearly all Maine employers with 1 or more employees must secure workers' compensation. Sole proprietors and some executive officers may elect out by filing the appropriate form with the Maine Workers' Compensation Board. Source: Maine Workers' Compensation Board (https://www.maine.gov/wcb/). - Commercial auto. Your personal auto policy almost certainly excludes business use. Hired and non-owned auto coverage protects against claims arising from employee-owned vehicles used on company business. - Tools and equipment (inland marine). Homeowners and auto policies exclude business tools beyond small dollar limits. Inland marine is the contractor-specific tool coverage. - Professional liability (errors and omissions). Rarely needed for pure trades work but useful if you do design-build or estimating for others. - Umbrella. A $1M or $2M umbrella is cheap relative to what it protects. Shop the market. Trade association programs (ABC Maine, AGC of Maine, PHCC of Maine, IBEW/NECA Boston JATC-affiliated shops) often have group insurance programs that beat street-rate premiums for the trade. Maine Employers' Mutual Insurance Company (MEMIC) is a large Maine-focused workers' compensation carrier; quote against standard-market carriers. Never let coverage lapse during an active job. A 1-day gap on a multi-month project is enough to void a claim if something happens during the gap.