Liability insurance Maine businesses carry covers third-party bodily injury, damage to other people’s property, personal and advertising injury, legal defense costs, and settlements. It does not cover injuries to your own employees, damage to your own property, or professional mistakes. Those risks require workers’ compensation, property, and professional liability policies.
FAQ_category: (HIDDEN) Industry FAQs
Liability insurance is required for every registered vehicle in Maine, along with uninsured motorist and medical payments coverage. General liability insurance for the business itself is not required by state law. Most businesses still carry it because landlords, lenders, and client contracts demand proof of coverage before signing.
Business insurance Maine typically costs $20 to $50 per month for general liability coverage. Costs vary based on industry and risk. Higher-risk trades like roofing pay more, while low-risk office businesses often land near the bottom of the range. Adding coverages like commercial auto or professional liability increases the total.
General liability insurance is the best starting point for most Maine small businesses, often combined with commercial property and professional liability coverage. Add workers’ compensation as soon as you hire your first employee and commercial auto if your business uses vehicles. The right mix depends on your industry and daily operations.
Most contractors evaluate general liability, workers’ compensation, commercial auto, inland marine, installation coverage, and umbrella insurance. Effective August 1, 2026, Act 757 requires certain residential construction, mold remediation, and home improvement license applicants to show at least $500,000 in liability insurance or qualifying protection, plus workers’ compensation evidence.