Is workers comp required in Virginia?
Virginia generally requires coverage for employers with more than two regular employees, counting part-time workers. Owners, partners and corporate officers are treated under their own rules, and some workers such as certain agricultural or domestic employees may be handled differently.
Buying coverage in Virginia
Virginia employers buy workers comp from private insurance companies, and businesses that are hard to place can obtain coverage through the state's residual market or a state-chartered carrier where one exists.
Who sets the rules
The Virginia Workers' Compensation Commission oversees workers comp in Virginia. In Virginia, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates.
What Virginia employers should know
- Federal contractors in Northern Virginia often need waivers of subrogation and specific employers liability limits written into the policy.
- Virginia's employee count includes part-time workers, which affects small businesses near the threshold.
Virginia facts employers ask about
The Virginia Workers' Compensation Commission oversees the system. Employers that regularly have more than two employees, full- or part-time, must carry coverage. Sole proprietors and partners are not counted, but corporate officers and LLC members who work in the business are generally counted toward the threshold.
The Commission's compliance staff can assess civil penalties against employers that fail to insure, and an uninsured employer is liable for injured workers' benefits. Virginia also has an Uninsured Employer's Fund that pays benefits in some cases and then pursues the employer for repayment.
Virginia uses NCCI classifications. Northern Virginia businesses often send employees into Maryland and Washington, DC, which have their own benefit systems, so tell your agent where staff actually work so the policy lists the right states.
Virginia contractors should also know that the Department of Professional and Occupational Regulation and many localities ask for evidence of workers comp coverage when a business applies for a contractor license or building permit, so keeping a current certificate on hand avoids delays.
Sources: Virginia Workers' Compensation Commission. Rules change; confirm current requirements with the agency before you rely on them.
How premiums are calculated
As in most states, VA premium is generally the class code rate per $100 of payroll, adjusted by any experience modification, credits and state charges. The final amount is confirmed by a payroll audit after the policy period. Learn more about how workers comp rates work and preparing for an audit.
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Virginia workers comp FAQ
Is workers comp required in Virginia?
Virginia generally requires coverage for employers with more than two regular employees, counting part-time workers. Rules and exceptions change, so confirm your situation with the state agency or an agent.
Who oversees workers comp in Virginia?
The Virginia Workers' Compensation Commission administers the workers compensation system in Virginia.
Can I buy Virginia workers comp from a private insurer?
Yes. Private insurers write workers comp in Virginia, and a market of last resort is available for businesses that are hard to place.
How is workers comp priced in Virginia?
In Virginia, the National Council on Compensation Insurance (NCCI) provides the classification system and loss costs that insurers use to file rates. As in most states, VA premium is generally the class code rate per $100 of payroll, adjusted by any experience modification, credits and state charges. The final amount is confirmed by a payroll audit after the policy period.