Who Is Covered?
Virtually all employers in Maine must provide workers' compensation insurance coverage for their employees. Public employees are covered, as are volunteer ambulance workers and firefighters. Volunteers are treated as employees of the governmental entities that they serve.
A few categories of employment are specifically exempted from coverage:
• Domestic servants
• Seasonal agricultural and aquacultural laborers, if the employer has six or fewer such employees on a regular basis and liability insurance of at least $100,000 times the number of workers and medical coverage of at least $25,000
• Close relatives of a sole proprietor
• Seafarers in interstate or foreign commerce
• Maritime employees in interstate commerce
• Real estate sales personnel who are independent contractors
Coverage may be waived by major shareholders of professional corporations. Employers that are not obligated to provide coverage may elect to be covered under the workers' compensation law, thereby gaining immunity from other legal actions. An employer hiring an independent contractor is not required to provide workers' compensation for the contractor or the contractor's employees.
Leased employees. An employer that leases employees must provide workers' compensation for them. If employees are leased from more than one leasing company, separate policies must be purchased for employees of each. What Is Covered?
"No-fault" system. Workers' compensation is a "no-fault" system. Employees receive compensation without having to prove that the employer was at fault for the injury. They need only show that the injury arose "out of and in the course of employment." This no-fault aspect distinguishes workers' compensation from ordinary "tort" law, which ...