How does workers' comp work in Vermont?

Vermont is an NCCI state for Workers' Compensation purposes. This means it partners with the National Council on Compensation Insurance to determine rates on all business classification codes and to administer the assigned risk for the state.

There are currently only 25 insurance companies actively providing workers compensation quotes in Vermont. Most states have a couple hundred who quote within the state. This lack of competition and the fact that there is no assigned risk partner to compete with the open market cause rates in Vermont to remain high.

At Workers Compensation Shop.com, we are a nationwide provider who partners with more than 30 insurance carriers. Because we partner with so many carriers we can shop your policy around and make carriers compete for your business. Our agents are experts at finding rebates and discounts some other agencies may not have access to. Because we specialize in workers comp we are confident we can get you the best rates in the industry.

Workers' Comp Rules & Information for Vermont

State Insurance Directives Regarding Covid-19

The Vermont DFR “encourages” insurers to be flexible with premium payment plans and premium deposit requirements for businesses temporarily closed due to CV and to consider premium payment delays/reduction to help insureds maintain coverage.

Discretionary order in effect from 03/24/2020 until further notice.

State Orders Regarding Insurance Claims Related to Coronavirus

No current state orders.

Vermont Department of Labor

Division of Workers' Compensation and Safety
National Life Building, Drawer 20
Montpelier, Vermont 05620-3401
802-828-2286

What is Workers' Compensation?

The basic purpose of the Workers’ Compensation is to provide wage replacement benefits and medical treatment for employees who have been injured or become ill due to a work-related injury or illness. It prevents the employer from bearing the costs of injuries that occur during normal business operations.

Vermont is an NCCI State

Vermont partners with the National Council on Compensation Insurance (NCCI). NCCI gathers data, analyzes industry trends, and prepares objective insurance rate and loss cost recommendations. NCCI is the nation’s most experienced provider of workers compensation information, tools, and services. Vermont uses NCCI to determine rates on workers' compensation coverage and to administer the assigned risk for the state. If your business for any reason cannot find coverage on the open market the assigned risk will offer coverage. Coverage in the assigned risk is normally higher than the open market.

How does workers comp help my business?

Your business benefits from workers' compensation coverage, by not being liable for injuries that occur as a part of normal business operations. This applies whether the injury was the fault of the business or was caused by negligent actions of the employee. You can move forward with your business operations knowing that if one of your employees is injured because of something that happens as a normal part of your business operations, your business is not liable for the costs.

How does workers comp help my employee?

Employees benefit from workers comp coverage by having lost wages covered while they are hurt or sick and not able to work. It also pays for medical costs they might incur as a result of the sickness or injury.

More Programs and Options

We're always working with our insurance carriers to develop specialized programs for a broad range of industry class codes. Our Target Programs are designed to streamline the underwriting process and help ensure we offer the lowest rates available anywhere.

  • Contractors
  • Home Health Care
  • Janitorial Services
  • Transportation
  • Hospitality
  • And More
Vermont Work Comp Information

Penalties for Employers

Any employer who fails to provide workers compensation coverage may be assessed a penalty of $50.00 per day without coverage, up to $5,000.

If coverage is not purchased within 5 days of receiving a non-compliance notice, the penalty jumps to $150 per day. Employers are also liable for claims and may have their business closed for repeated offenses.

Let Workers Compensation Shop.com help your business navigate workers comp insurance in Vermont.

What Does Workers' Compensation Insurance Cover?

...
Workers' comp coverage protects employees when injured. It makes good financial sense for both parties.
Injuries and accidents happen. A workers' comp policy is a no-fault system that pays for these accidents and claims. It's required by law in most states.
  • Loss of income for employees unable to perform job duties
  • Medical expenses for employees injured on the job
  • Retraining expenses for employees unable to return
  • Permanent injury or disability for lasting injuries
  • Survivor benefits if employees are killed on the job
Coverage does not protect employers from everything. Sometimes employees and employers can be negligent.
...
In some instances, workers' compensation coverage will not protect employers or employees from the legal liability resulting from a workplace injury.
  • Injuries resulting from a violation of the law
  • Incidents resulting from employees' use fo drugs or alcohol
  • Injuries that did not occur in connection with the job
  • Clear company policy violations
  • Injuries that did not occur in connection with the job

Workers' Comp Includes Employers Liability Insurance?

Employers liability insurance is an additional layer of coverage included as part of a workers' compensation insurance policy. Employers Liability is know as Part 2 of the policy. It adds two additional coverages for employers:

Employers Legal Liability and Legal Defense Costs

In todays world, there are a variety of reasons employees and third-parties sue employers for damages. Here a some common types covered by employers liability insurance:

Third Party Lawsuits

Your employee sues another party that may have contributed to the injury, In turn, the third party sues your business.

Consequential Bodily Injury

Another party or individual is injured while providing care for the injured employee.

Dual Capacity Legal Action

An employee files a claim but also attempts to sue the employer for being responsible in other ways outside of the employment relationship.

Loss of Consortium

A spouse sues for damages caused by the loss of companionship or relations.

Employers Liability coverage is not included with coverage in the four monopolistic states. Employers in these states can endorse this coverage onto their General Liability policy. That coverage is commonly know as Stop Gap Coverage.

Visit NCCI for more resources and information about workers' compensation class codes. Visit United States Department of Labor for more information about government agencies managing workers compensation insurance rates.

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