Why Automating Payroll Is a Smart Move for Your Small Business
June 9, 2025
No Comments
Read More »
Virginia workers' compensation insurance: Your guide to requirements and getting a policy
If you’re a Virginia employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
In Virginia, workers’ compensation provides no-fault insurance coverage for your employees in the event they are injured on the job, regardless of how the injury occurred.
Because of its no-fault provision, having workers’ compensation insurance prevents employers from being sued, even if the employer is partially responsible for the injury. On the other hand, workers’ compensation also provides a significant benefit to your employees, paying their medical expenses and wages and income should they be injured on the job.
Any Virginia employer who employs two (2) or more employees, whether full-time or part-time, is required by law to carry workers’ compensation insurance. Under Virginia law, the following are considered employees:
Corporate officers
LLC managers
Family members that work in the business
Undocumented workers
Temporary workers
Seasonal workers
Part-time workers
Minors
Church, charity, and non-profit workers
Subcontractors hired to assist in the business or fulfill a contract
For businesses that regularly hire subcontractors, it’s important to include those subcontractors in the employee count.
Sole proprietors with no employees are the only exemption under Virginia law, but the state does not provide a waiver or exemption form for sole proprietors, who are free to voluntarily obtain workers’ compensation insurance if they choose.
There are exceptions to the sole proprietor rule. For example, if a sole proprietor hires a subcontractor, the subcontractor and any of its employees should be included in the employee count, and therefore would require workers’ compensation insurance.
Virginia workers’ compensation coverage typically includes the following:
Medical expenses: All medical expenses related to workplace injuries or illness, including doctor visits, prescriptions, and transportation.
Wage loss replacement: Provided to employees after missing seven days of work due to a medically authorized injury or illness.
Vocational rehabilitation: Includes counseling, job coaching, training, education, and retraining.
Permanent partial disability: Covers conditions like amputation, disfigurement, loss of hearing or vision, or certain lung diseases.
Permanent total disability: Offers lifetime wage replacement for severe injuries such as loss of both hands, feet, vision, or paralysis.
Death benefits: Covers funeral costs and wage loss replacement for dependents of a deceased employee.
Virginia employers have four options:
Purchase commercial coverage through a licensed insurance carrier.
Apply to become self-insured.
Sign up for group self-insurance.
Use a registered Virginia PEO (Professional Employer Organization).
High-risk businesses may purchase coverage through the Virginia Assigned Risk Pool. To become self-insured, businesses should consult the Self-Insurance Quick Reference Guide and complete Form 20.
Once coverage is in place, employers must post a Workers’ Compensation Notice (VWC Form 1) in the workplace.
Employers without required coverage face:
A civil penalty of up to $250 per day, with a $50,000 maximum.
Liability for all medical costs if an employee is injured.
Potential business shutdown and even imprisonment for continued noncompliance.
Employees must report injuries within 30 days (or 60 days for illness).
Employers must file a First Report of Injury within 10 days.
Employees are responsible for filing a claim with the Virginia Workers’ Compensation Commission within two years.
Employees may visit the nearest emergency room for initial treatment. Employers must then provide a panel of at least three medical providers for continued care.
Having a workers’ compensation policy in place protects both employers and employees. It shields employers from costly lawsuits and ensures employees are covered for medical and rehabilitation expenses after workplace injuries or illnesses. If you have questions about workers’ compensation or want help getting coverage, Beyond is here to assist.
