Do I Need Workers Compensation Insurance?


Workers compensation is insurance that provides employees with medical care and wage replacement, should an employee be injured on the job. In exchange for these benefits, the employee must agree not to file a law suit against the employer.

Although every state has different regulations regarding the amount of workers compensation insurance a business must carry, all businesses, even ones considered to be safe, should have workers compensation. If you are wondering if you need workers compensation in Virginia, the answer is, yes.

In Virginia, any business that regularly employs two or more people must have workers compensation employees. This includes seasonal workers, minors, trainees and part-time employees. If your business has fewer than two employees, then workers compensation is optional by law in the Commonwealth of Virginia.

There are, however, some exceptions. LLC members, partners and sole proprietors are exempt from mandatory coverage but may opt to cover themselves with a policy. In Virginia, independent contractors are not automatically eligible for workers compensation coverage; however, if they employ two or more employees, even par-time employees, those employees are eligible for coverage. If you require workers compensation in Virginia, in you have several options. One is to purchase workers compensation from a commercial carrier. The other is to self-insure, but this is only an option for certain approved businesses.