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 in Virginia and how to stay compliant in 2026.
In Virginia, workers’ compensation provides no-fault coverage for employees who are injured on the job or develop a work-related occupational disease. For employers, workers’ compensation is an exclusive remedy that generally helps shield the business from employee civil lawsuits related to covered workplace injuries. For employees, it provides access to prompt but limited benefits, including medical care and wage replacement when eligible.
Virginia law generally requires workers’ compensation coverage for any employer that regularly employs more than two (2) part-time or full-time employees. If your business hires subcontractors to perform the same trade, business, or occupation or to fulfill a contract of the business, those subcontractor employees may be included in your employee count, which can trigger the coverage requirement. For employers required to have coverage, it is mandatory, there are no waivers and no exceptions.
To determine whether you meet the employee threshold, Virginia counts “employee” broadly. Examples that may count include corporate officers and LLC managers, family members who perform work, temporary/seasonal/part-time workers, minors, undocumented workers, and workers performing services for churches, charities, and non-profits.
If an employer does not regularly employ more than two workers, the employer may fall outside the general coverage requirement, but the subcontractor rules can still push you above the threshold when you add statutory employees.
For sole proprietors (and other businesses that believe they are not required to insure), Virginia does not provide a waiver or exemption form. Coverage can still be purchased voluntarily even when not required by law.
Virginia workers’ compensation benefits typically include: medical treatment for a covered workplace injury/occupational disease, and wage-loss benefits when eligibility requirements are met.
For wage-loss benefits, Virginia has a 7-day waiting period for disability wage replacement. If disability lasts more than 21 days, the initial waiting period may become payable. (Va. Code § 65.2-509)
Official statute link.
Virginia recognizes four main ways to secure coverage: commercial coverage, self-insurance, group self-insurance (GSIA), or coverage through a registered Professional Employer Organization (PEO).
If you cannot obtain coverage in the voluntary market, Virginia’s employer guidance points employers to the assigned risk market managed by NCCI.
Self-insurance requires an application (Form 20) and supporting documentation; the Commission requests 90 days prior to the desired effective date, and Form 20 includes a $200 non-refundable application fee.
Official links:
Once coverage is in place, employers must post a Workers’ Compensation Notice (VWC Form 1) in the workplace.
Official poster.
If an employer fails to insure when required by law, Virginia may assess a civil penalty of up to $250 per day uninsured, capped at a maximum of $50,000, plus costs (Va. Code § 65.2-805). Uninsured employers can also be liable for compensation due to injured employees, may face an order prohibiting business operations, and may be subject to criminal prosecution for continued noncompliance.
Official reference (penalties summary).
Employees should give notice to the employer immediately, and Virginia’s workplace notice instructs employees to provide notice in writing of the injury/occupational disease and the date of accident/notice of disease.
Official poster (VWC Form 1).
to file a First Report of Injury with the Virginia Workers’ Compensation Commission within 10 days of having knowledge of any injury or death of an injured worker.
Separately, the injured worker must file a claim with the Commission to protect the right to benefits. The Commission provides a Claim Form and instructions (including online, fax, mail, and in-person options).
Official Claim Form page.
Emergency care should be obtained immediately when needed. For ongoing care, Virginia’s required workplace notice states that, at the time of the accident, the employer should give the employee the names of at least three physicians from which the employee may select the treating physician.
Official poster (VWC Form 1).
Having workers’ compensation insurance in place helps protect both employers and employees. It supports employees with access to medical care and potential wage-loss benefits after a covered workplace injury or occupational disease, and it helps employers maintain compliance and reduce exposure to costly disputes and penalties. If you have questions about workers’ compensation in Virginia or want help getting coverage set up for 2026, Beyond is here to assist.
