As a contractor in Maine, having proper insurance coverage is crucial for protecting your business, meeting state requirements, and securing contracts. This comprehensive guide breaks down the essential insurance coverages Maine contractors need, including costs based on our analysis of actual quotes from leading carriers.

Build with confidence by understanding general contracting insurance.

General Liability Insurance for Maine Contractors

General liability insurance protects your contracting business from third-party claims of property damage and bodily injury. Based on our analysis of over 800 contractor quotes, here are the typical costs for Maine contractors:

Revenue SizeAverage Premium% of RevenueFavorable RatePotential Savings
$500K$6,6001.3%$4,60030%
$1M$11,2001.1%$8,50024%
$2.5M$25,9001.0%$19,40025%

These premiums assume:

  • Clean claims history (5+ years without incidents)
  • Standard $1M/$2M coverage limits
  • Typical mix of residential and commercial work
  • Approximately 10% subcontractor costs

Worker’s Compensation Insurance for Maine Contractors

Worker’s compensation insurance is mandatory for Maine contractors with employees. Based on our analysis, Maine contractors typically pay around $4,189 per employee annually for workers’ compensation coverage.

For Maine contractors, typical workers’ compensation costs per $100,000 of payroll average $10,580, which is in the mid-range compared to other states.

Key premium factors include:

  • Employee classification codes
  • Annual payroll
  • Claims history
  • Safety programs
  • Experience modifier rating (EMR)

Common contractor classification codes and their approximate rates in Maine:

  • Code 5606 (Project Manager/Supervisor): $3-5 per $100 of payroll
  • Code 5645 (Residential Construction): $8-12 per $100 of payroll
  • Code 5403 (Commercial/Large Projects): $12-17 per $100 of payroll

Additional Business Insurance for Contractors in Maine

1. Commercial Auto Insurance

  • Typical cost: $1,000-$4,000 per vehicle annually
  • Required for business-owned vehicles
  • Higher limits often needed for larger contractors
  • Coverage for both owned and hired vehicles
  • Protection against accidents, theft, and damage

2. Tools & Equipment Coverage

  • Cost: $1,500-$5,000+ annually for $15k-$50k coverage
  • Protects both owned and rented equipment
  • Coverage follows equipment to all jobsites
  • Protection against theft, damage, and vandalism
  • Includes coverage during transport

3. Commercial Property Insurance

  • Protects offices, storage facilities, and workshops
  • Annual premiums: $2,000-$20,000+ based on property value
  • Coverage for fire, theft, vandalism, and natural disasters
  • Protection for business personal property
  • Coverage for improvements and betterments

4. Builder’s Risk Insurance

  • Premium: 0.15-0.75% of project value
  • Covers projects under construction
  • Protection against fire, weather, vandalism
  • Coverage for materials and supplies
  • Protection during renovation projects

5. Contractor License Bonds

  • Protects clients from contractor default
  • Premium typically 1-3% of bond amount
  • Cost varies based on credit and experience
  • May be required for certain projects or licenses
  • Guarantees compliance with state regulations

Get Maine Contractor Liability with ContractorNerd

ContractorNerd specializes in making insurance simple and data-driven for Maine contractors. Our platform offers:

  • Instant online quotes from top-rated carriers
  • Side-by-side coverage comparisons
  • Contractor-specific expertise and guidance
  • Streamlined application process
  • Ongoing policy management support
  • Claims advocacy when needed

Our team of contractor insurance specialists understands Maine’s unique requirements and can help you:

  • Optimize coverage levels based on your specific risks
  • Find competitive rates through our carrier network
  • Bundle policies for additional savings
  • Ensure compliance with state regulations and contract requirements

To get started with tailored quotes for your Maine contracting business, visit our online quote tool or speak with one of our contractor insurance specialists today.