The state of Virginia is home to almost 800,000 small businesses that employ over 1.6 million people. That accounts for 99.5% of all the businesses within Virginia. The state’s workers’ compensation laws protect those employees but also support businesses and safeguard business owners.
Yes, there is a good chance that your Virginia business must have workers’ comp insurance. It’s mandatory for all businesses with three or more employees, although you will discover a handful of exceptions.
Sole proprietors working with no employees or subcontractors do not require workers’ comp insurance, although it is still a smart decision to buy coverage. Sole proprietors also do not need to file a waiver or exemption with the state government.
All executives and corporate officers are considered employees for the sake of the count, but they can reject coverage if they so desire. For that to work, the business must have workers’ comp coverage for other eligible employees. The employee rejecting coverage must file a Rejection of Coverage form with the state’s Workers’ Compensation Commission, as well as with the company’s insurance company.
Note that the same rules apply to LLC members, but not to executive non-compensated officers of 501(c)(3) organizations.
Self-employed professionals/independent contractors are not required to carry workers’ comp insurance in Virginia. However, the line between self-employed professional and employer is unclear, and if the state determines that the relationship is one of employer and employee instead of employer and independent contractor, the business will be at risk of paying fines and may need to provide workers’ comp coverage.
Note that an employer controls the work to be performed, hires people to do the work, can fire those doing the work, and pays the people doing the work.
Virginia takes a different stance than most states when it comes to workers’ compensation exemptions. Only those individuals previously discussed can be considered exempt. What’s more, the state has a very broad definition of what constitutes an “employee”, thereby mandating the business purchase coverage, including:
Workers’ comp insurance is a requirement for most businesses in Virginia. However, that doesn’t mean you have no control over the situation. In fact, it’s possible to save money without sacrificing coverage with the right steps. Here are some of the most important steps to reducing your workers’ comp costs:
Workers’ compensation insurance protects your employees, but it also safeguards your business. Employees injured on the job deserve support, and this insurance kicks in to keep your business from covering the cost.
The lifecycle of workers’ comp insurance in Virginia looks like this:
Keeping accurate payroll and tax records is essential to keeping your costs down and avoiding unexpected bills at the end of the year.
Workers’ comp insurance in VA covers employees who have been injured on the job or who are suffering from an occupational disease. This type of insurance covers:
Medical costs related to the injury/accident, including physical therapy, prescription medications, rehabilitation, and more
Lost wages due to the injury or illness
Death benefits for spouses and dependents if an employee is killed in a work-related accident or incident
Obtaining workers’ compensation insurance is essential. You can purchase a policy for your company through any insurance agency licensed to operate in Virginia.
Kickstand Insurance offers workers’ comp throughout the state and we deliver personalized guidance to reduce your costs without sacrificing coverage. If you represent a large business, you may be able to self-insure.
Virginia levies steep penalties if you shirk your responsibility to carry workers’ compensation insurance. You could face a fine of $250 per day that you go without coverage, up to a maximum of $50,000. Depending on the situation, your business could also face criminal charges.
Under Virginia law, workers’ comp death benefits include the following:
Workers’ compensation settlements often work in the best interests of all parties.
For instance, employees can settle their claims faster and receive compensation almost immediately. It also benefits employers. The process involves the employee and their attorney sitting down with the insurance company and its attorney(s) to find a solution that works for everyone.
The settlement agreement must be signed by the employee or their survivor(s), an employer rep, and the insurance company. It must also be filed with Virginia’s Workers’ Compensation Division after being approved by a sitting judge and should contain specific elements, including:
Like most states, Virginia limits workers’ compensation claims to two years from the date of the injury and does not offer extensions for diseases or injuries discovered after that.
Start by filling out a short online form about your business. We’ll use that info to get you an estimated quote. Then, one of our experienced agents will contact you to review the quote and make sure you are getting the absolutely lowest rate possible for your business. Once the quote is finalized, you’re ready to buy the policy - often with coverage starting that day!
Why choose Kickstand? We go out of our way to customize your coverage to ensure that you’re able to save as much as possible while still getting the coverage you and your employees need.
We combine online quotes for speed with access to expert agents to deliver the personalized experience you deserve.
It takes just 5 minutes to complete our online form and receive a no-obligation quote and invitation to connect with one of our expert agents.