If your business operates in Richmond, Norfolk, or anywhere in the Commonwealth, Virginia workers’ comp insurance is more than just a good idea—it’s a legal necessity. This no-fault coverage protects both your employees and your business when work-related injuries happen.
This guide breaks down who needs workers’ comp in Virginia, what’s covered, how claims work, what it costs, and how to avoid steep penalties for noncompliance.
Who Needs Workers' Comp Coverage in Virginia?
Under workers’ comp requirements Virginia, any business with more than two employees (3 or more) full-time, part-time, or seasonal workers, must carry coverage. Once your business reaches that threshold, you’re legally obligated to comply.
Coverage rules include:
- Required: More than 2 employees (3+) triggers the legal requirement
- Sole proprietors: Exempt by default unless they opt in
- LLC members: Can reject coverage
- Agricultural employers: Must provide coverage if they regularly employ more than 3 full-time employees. Seasonal or migrant workers don’t count toward this threshold unless employed for more than 30 days in a calendar year
- Domestic workers: Households and homeowners are exempt from covering domestic workers in private homes, regardless of the number employed. However, businesses providing domestic services must carry coverage
(To reject coverage LLC managers must provide documentation proving their managerial role, such as articles of organization, operating agreements, or official appointment records).
Industry-specific workers’ comp Virginia mandates apply to higher-risk operations:
- Construction: All on-site workers must be covered—even subcontractors—unless they meet IRS independent contractor rules
- Healthcare: Doctors’ offices, hospitals, and assisted living facilities must insure staff, including part-time techs and aides
- Retail & Hospitality: Coverage is mandatory once your headcount exceeds two employees, including seasonal staff
Virginia’s no-fault system ensures that employees receive benefits quickly without having to sue. But employers who ignore the law face personal liability and potential business shutdowns.
What Benefits Are Included?
Virginia workers’ comp insurance covers a wide range of job-related injuries and illnesses. Coverage starts the moment an incident occurs—whether it’s a fall in the parking lot or a machine-related accident on the floor.
Workers’ compensation benefits Virginia employers must provide include:
- Medical care: ER visits, surgery, rehab, prescriptions—100% covered
- Temporary Total Disability (TTD): Two-thirds of weekly wage if the employee is unable to work
- Permanent Partial Disability (PPD): Compensation for lasting physical damage (e.g., loss of limb or mobility)
- Vocational rehabilitation: If the worker can’t return to their original job, retraining is covered
- Death benefits: $10,000 for funeral expenses and two-thirds of lost wages to eligible dependents
This system gives employees the help they need to recover—and gives employers legal protection from lawsuits. If your payroll and finances qualify, you may also apply for self-insurance approval through the Virginia Workers’ Compensation Commission (VWC).
Want a simple breakdown of how workers’ comp works? Read our guide: Workers’ Comp Insurance Basics – What You Should Know.
Common Workplace Injury Claims in Virginia
Certain workplace injuries happen more often than others—and some industries have higher claim rates.
Typical claims covered under workers’ compensation claim process VA:
- Lifting & Overexertion: Frequent in warehouses and healthcare—often causes back and joint injuries
- Slips and falls: Common during icy winters in retail, food service, and office settings
- Caught-in machinery: Found in manufacturing and maintenance jobs where moving parts aren’t fully guarded
- Repetitive motion injuries: Typing or tool use can lead to carpal tunnel or tendonitis—even among remote workers
- Motor vehicle accidents: Delivery drivers and field employees face significant exposure
Workplace injuries requiring more than a week off work can result in substantial costs for businesses, including medical care and lost wages. Businesses without the required workers’ compensation insurance face severe penalties and potential lawsuits, adding significant financial risk
How Much Does Virginia Workers' Comp Insurance Cost?
Virginia workers’ comp insurance costs are based on several key factors:
- Industry risk level (classification code)
- Annual payroll amount
- Claims history / experience modifier
- Location (urban vs rural)
- Safety programs or return-to-work policies
Claim Filing and Compliance Rules
When an accident occurs, speed and accuracy matter. The workers’ compensation claim process VA requires both employees and employers to act fast.
Steps to follow:
- Employee notification: Injured employees must give written notice to their employer immediately or as soon as practicable after the accident occurs, but no later than 30 days after the incident
- Employer reporting: Employer files First Report of Injury with the VWC within 10 days for severe injuries/deaths, or 30 days for minor injuries
- Formal claim filing: Employee must file formal workers’ compensation claim with the VWC within 2 years of the injury
- Notice requirements: Written notice must include the employee’s name and address, time and place of accident, and nature and cause of the accident and injury
Important deadlines and consequences:
- 30-day notice deadline: Employees who fail to provide written notice within 30 days may lose compensation benefits unless they can show reasonable excuse or that the employer had knowledge of the accident
- No compensation before notice: Employees cannot receive physician’s fees or compensation that accrued before giving proper notice, unless the employer had knowledge of the accident
- Prejudice standard: Even defective or inaccurate notice won’t bar compensation unless the employer proves their interests were prejudiced
Failing to meet these deadlines may lead to denied claims or lawsuits. Training your staff on proper incident reporting procedures is essential for any risk-conscious employer.
Penalties for Noncompliance
Virginia doesn’t tolerate coverage lapses. Penalties for violating workers’ compensation compliance requirements include:
- Civil penalties for failing to maintain coverage
- Stop-work orders until insurance is purchased
- Personal liability for unpaid medical and wage replacement costs
Even one uninsured day during payroll audits can trigger significant penalties. Make sure your coverage is active and correct.
Final Word for Virginia Employers
Whether you’re managing a small team in Roanoke or a construction site in Arlington, Virginia workers’ comp insurance protects your business and your team. It’s not just about checking boxes—it’s your financial safety net.
Call us today at 855-718-7552
Stay protected, stay compliant, and secure your business.
