Workers comp coverage required in Virginia
Employers with 3 or more employees, regular or part-time, are required to carry workers' compensation insurance. Verified 2026-05-09.
Who must carry workers comp in Virginia?
Virginia workers compensation coverage is required Employers with 3 or more employees, regular or part-time, are required to carry workers' compensation insurance.
The threshold language matters: states write the rule slightly differently. Some count any worker, some count only W-2 employees, some count owners separately, some have industry-specific exemptions (agriculture, domestic service, casual labor). For a Virginia employer with a non-trivial workforce, the safest default is: assume coverage is required and confirm with the state department of insurance or a local agent.
How the threshold interacts with 1099s and subs
Individuals classified as independent contractors (1099) are generally not covered by workers' compensation, but their classification can be challenged based on the actual nature of the working relationship. General contractors are responsible for ensuring that their subcontractors carry workers' compensation insurance or for providing coverage for their subcontractors' employees.
Penalty for going without
Employers failing to carry required workers' compensation insurance may face civil penalties, fines, and potential criminal charges, and are personally liable for injured workers' medical expenses and lost wages. The financial penalty is usually a fraction of the human cost: an injured employee at an uncovered employer can sue directly under tort law instead of being limited to the workers comp benefit, exposing the owner to lost-wage damages, pain and suffering, and punitive damages without the corporate veil.
Related reading
FAQs
Who has to carry workers comp in Virginia?
Employers with 3 or more employees, regular or part-time, are required to carry workers' compensation insurance.
When does the requirement kick in for a new Virginia employer?
The clock starts on the first day the first qualifying employee is on the books. Virginia does not have a grace period for new employers, so a policy needs to be bound on or before the first hire date. Some agents can issue same-day binders for low-risk class codes.
What is the penalty for not having workers comp in Virginia?
Employers failing to carry required workers' compensation insurance may face civil penalties, fines, and potential criminal charges, and are personally liable for injured workers' medical expenses and lost wages.
Do 1099 contractors trigger the coverage requirement in Virginia?
Individuals classified as independent contractors (1099) are generally not covered by workers' compensation, but their classification can be challenged based on the actual nature of the working relationship.
Are subcontractors counted toward the threshold in Virginia?
General contractors are responsible for ensuring that their subcontractors carry workers' compensation insurance or for providing coverage for their subcontractors' employees.
What happens if I am audited and found non-compliant in Virginia?
Virginia typically issues a stop-work order, assesses back premium for the period of non-coverage, and adds penalties on top. Specifically: Employers failing to carry required workers' compensation insurance may face civil penalties, fines, and potential criminal charges, and are personally liable for injured workers' medical expenses and lost wages. Severe or repeat violations can lead to criminal charges and personal liability for the business owner, separate from the corporate veil.