How does workers' comp work in Virginia?

Virginia State law requires most employers to purchase workers comp coverage to protect injured employees. Coverage provides an exclusive remedy for the employer. This means that employees can only typically only file a claim against the insurance policy rather than the employer. In return, employees get faster resolutions for claims.

Employers who regularly employ more than two part or full-time employees are required to provide coverage. Coverage is mandatory and they are no waivers or exceptions.

Contractors run a particular risk when they utilize sub-contractors to assist with their work. Sub-contractors must be counted as employees unless the employer can provide Proof of Workers Comp Coverage for the subcontractor.

Workers' Comp Rules & Information for Virginia

VA Insurance Directives Regarding Covid-19

To avoid lapse in coverage and consistent with prudent insurance practices, The state of Virginia “encourages” insurers to consider the following actions: relax premium due dates, extend premium payment grace period, waive late fees and penalties, and allow premium payment plans. Only cancel/nonrenew a policy after exhausting other reasonable efforts.

Discretionary order in effect from 03/27/2020 until further notice.

State Orders Regarding Insurance Claims Related to Coronavirus

No current state orders.

Virginia Workers Comp Regulations

Virginia Worker' Compensation Commission
1000 DMV Drive
Richmond, VA 23220

VA Employee Definition for Work Comp

Corporate Officers and LLC Members

Family members working for the business

Temporary, seasonal, and part-time employees

Minors and undocumented workers

Workers for churches, charities, and non-profits

Independent Contractors Vs. Employees

Employers and contractors who pay other sub-contractors using a form 1099 does not guarantee they will not be liable for coverage or claims. The 1099 employee designation is not important under VA workers comp rules. If the facts around the working relationship demonstrate that employer control exists, an employee relationship is established.

Sole-Proprietors With No Employees

Sole-proprietors with no employees or sub-contractors are not required to purchase coverage. The may opt to voluntary obtain a policy. No exemption or waiver of coverage is needed for sole-proprietors.

Virginia Work Comp Policy Credits and Discounts

Workers compensation rates are set each year by the VA Bureau of Insurance.  However, Virginia also allows private insurance companies to offer additional discounts and credits on each policy. This means that rates can vary by insurer. The best way to obtain the best prices on coverage is to utilize a licensed insurance agency willing to negotiate better credits for your business, like Workers Compensation

Virginia Coverage for Out-of-State Employers

Virginia requires that all out-of-state employers doing work in the state have proper state coverage. The state requires the Virginia to the policy under Item 3a. This item and section lists the states where the business performs work and therefore insures coverage. If an insurance carrier is unwilling to add Virginia under Item 3a of the policy it generally means they are not licensed to provide coverage in the state. Employer will need a second policy from an insurance company licensed in VA, or they will need a carrier that can provide coverage for all necessary states.

Virginia Drug-Free Workplace Program

Virginia rules require that all insurance companies give an additional 5% policy discount for all Virginia employers who operate a drug-free workplace. Contact your insurance company to get the requirements and form needed to file for this discount.

Create a quick and easy Drug Free Workplace Policy in less than 30 minutes. It's 100% free and provided by the U.S. Department of Labor.

Virginia Non-Compliance Work Comp Penalties

Virginia Employers who fail to purchase or maintain the proper workers' compensation insurance may be subject to civil penalties up to $250 for each day they are uninsured. The maximum penalty is $50,000. They may also be held liable for the cost of any claims that happen while uninsured. Repeat offenders may result in criminal prosecution and business revocation.

Virginia Workers Compensation Verification Tool

The Virginia Workers Compensation Commission now offers a free coverage verification tool to assist individuals with verifying coverage for a business by name or Federal ID Number. The tool must be launched from a page on the Commission's website at The link is on the left side under VWC Resources. The tool is called: Insurance Coverage Search.

Virginia Workers Compensation Questions

For additional information or questions about workers compensation insurance in Virginia, contact one of our workers comp Specialists at 888-611-7467.

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
Virginia Work Comp Resources

Coverage Facts

Coverage is mandatory in VA.

NCCI is the State Rating Bureau.

Private insurance carriers are allowed.

Self-Insurance is permitted, if authorized.

There is no State Fund in VA

VA does not recognize State Reciprocity

NCCI administers the Assigned Risk Program

We write Assigned Risk coverage in VA.

Let Workers Compensation help your business navigate workers comp insurance in Virginia.

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.

Copyright 2020 Workers Compensation All rights reserved.
California DBA: I-Shop Online Insurance Agency.
Top rated insurance agency- BBB. Pay for workers comp insurance with a credit card. Workers Compensation Shop on Facebook. Workers Compensation Shop on LinkedIn. Workers Compensation Shop on Twitter.