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Vermont workers' compensation insurance: Your guide to requirements and getting a policy
If you’re a Vermont 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 Vermont, nearly all employers with one or more employees are required to have a workers’ compensation policy. However, a few exceptions apply:
Up to four (4) corporate officers or LLC members may be excluded with prior approval from the Vermont Department of Labor (see application).
Employees whose work is considered casual and not part of the employer’s regular trade or business.
Individuals engaged in amateur sports, even if the employer helps fund such activities.
Agricultural or farm workers for employers whose total annual payroll is less than $10,000, unless the employer opts to provide coverage.
Certain elected officials and volunteers.
Sole proprietors.
You can find more details in Business Owner’s Guide to Vermont Workers’ Compensation Insurance.
In addition to maintaining coverage, Vermont law also requires employers to post a Workers’ Compensation Reinstatement Rights notice in a visible area accessible to all employees.
With a valid policy, workers’ compensation insurance generally covers workplace injuries and occupational diseases. These incidents may occur suddenly or develop over time, according to the Vermont Employers Fact Sheet.
Covered benefits include:
All reasonable and necessary medical treatment related to a work-related injury is typically covered. This can include hospital visits, physical therapy, medication, chiropractic care, and mental health support.
Employees who are temporarily unable to work may receive Temporary Total Disability (TTD) benefits. If the employee is cleared for light duty or part-time work, they may qualify for Temporary Partial Disability (TPD) compensation.
If an employee suffers a permanent condition, they may be entitled to benefits, as determined by a medical provider’s impairment rating.
If the employee can’t return to their previous job, they may qualify for job training, career counseling, or job placement assistance.
Failing to carry proper coverage can result in severe penalties. Here’s what’s outlined in Vermont law:
$100/day fine for the first seven days without coverage.
$150/day fine after the first week of noncompliance.
Stop work orders may be issued by the Commissioner.
$250/day administrative fee once an order is issued, plus:
Up to $250/day per employee administrative penalties.
Violating a stop work order may result in:
Civil penalties up to $5,000 for a first offense.
Civil penalties up to $10,000 for repeated violations.
Criminal penalties of up to $10,000 and/or 180 days in jail.
These are all specified in Vermont’s official statutes. You can also review them via the Vermont employer resources section.
In Vermont, an injury or illness is considered work-related if it arises out of and during the course of employment and may be sudden or progressive.
Employers must report any injury that requires medical care or leads to at least one lost workday using the First Report of Injury form. This report must be submitted within 72 hours.
Note: Filing a report does not mean the employer accepts liability. The insurance carrier decides whether to approve or deny the claim.
Employees must also file their official claim within six months, though this may be extended if the employer had prior knowledge of the injury.
Having workers’ comp insurance is more than just legal compliance, it’s about protecting your people and your business. For employees, it offers medical support and partial wage replacement in the event of injury. For employers, it offers peace of mind and legal protection against costly claims or lawsuits.
Have questions? The team at Beyond is here to help you navigate your workers’ compensation requirements.
