Virginia workers compensation requirements decide exactly when you must carry coverage, who counts toward the threshold, and what it costs to skip it. This guide breaks down the Virginia workers compensation requirements in plain English — the employee count that triggers the mandate, who is exempt, the penalty for going without, and how to get covered. All figures are from Virginia sources, verified as of June 2026.
In This Virginia Guide:
Is Workers’ Comp Required in Virginia?
Workers compensation insurance is required in Virginia for employers who regularly employ more than 2 employees (i.e., 3 or more), including part-time and seasonal workers; farm and horticultural employers are exempt unless they regularly employ more than 3 full-time workers
Virginia Workers’ Comp Requirements at a Glance
Here are the exact Virginia workers compensation requirements every employer should know:
| Employees that trigger the mandate | 3 |
| Which workers count | The threshold counts all employees including part-time, seasonal, temporary, minor, trainee, immigrant, and working family members; executive officers and LLC managers also count as employees; subcontractors and their employees are included when determining the total count if they perform the same trade, business, or occupation; farm and horticultural employers have a separate threshold of more than 3 full-time employees before coverage is required |
| Who is exempt | Sole proprietors with no employees and no subcontractors; domestic servants (household workers performing care, comfort, and convenience of household members); farm and horticultural laborers when the employer has 3 or fewer full-time employees; casual employees performing work outside the employers usual trade or business; volunteers who are not paid or compensated; non-compensated officers of tax-exempt 501(c)(3) corporations or property owners associations |
| Owners & officers | Corporate officers and LLC managers are counted as employees and must be covered; however, they may affirmatively reject coverage by filing a Rejection of Coverage form with the Virginia Workers Compensation Commission for approval and also filing a copy with their insurer; the business must have valid workers comp coverage in place before an officer or manager can reject personal coverage |
| Penalty for going without | Civil penalty of up to 250 per day for each day of noncompliance, subject to a maximum of 50000 under Virginia Code 65.2-805; knowingly and intentionally failing to comply is a Class 2 misdemeanor under Virginia Code 65.2-806, punishable by up to 6 months in jail and a fine of up to 1000; an uninsured employer is also personally liable for all workers comp benefits owed to injured employees including medical costs and lost wages |
| Monopolistic state? | No — buy from private carriers |
| State fund | NONE — Virginia does not operate a state fund for workers compensation |
How to Get Workers’ Comp Coverage in Virginia
Purchase a policy from a private insurance carrier licensed in Virginia; larger employers may apply for self-insurance approval through the Virginia Workers Compensation Commission; employers unable to obtain coverage in the voluntary market can obtain coverage through the assigned risk pool administered by the National Council on Compensation Insurance (NCCI)
Private market: YES
What Workers’ Comp Covers in Virginia
Workers’ compensation is a no-fault system: an injured employee gets benefits without having to prove the employer did anything wrong, and in exchange gives up the right to sue for most workplace injuries. A typical Virginia policy pays for medical treatment tied to a work injury, part of the wages lost while the worker recovers, longer-term disability benefits if the injury is permanent, and death benefits to a family.
It also includes employers-liability coverage, which protects the business if an injury still leads to a lawsuit. That trade-off is the practical heart of the Virginia workers compensation requirements: the coverage exists to keep one bad injury from sinking both the worker and the business.
Employees vs. Independent Contractors in Virginia
The most common way owners get the Virginia workers compensation requirements wrong is by assuming a worker is an “independent contractor” who does not count. State agencies look at how the work is actually controlled, not the label on a 1099. If Virginia decides a contractor was really an employee, the business can owe back premiums and penalties as if coverage should have been in place all along.
When you are close to the employee threshold, confirm each worker’s status with your state board before you decide you are exempt.
Other Virginia workers’-comp rules: Contractors and businesses that hire subcontractors in the same trade must count the subcontractors employees toward the coverage threshold; once an employer meets the threshold and must carry coverage, all employees must be covered and cannot be individually exempted (only executive officers and LLC managers may file rejection forms); effective 2026,
contractors bidding on state or local government construction projects must provide proof of active workers comp coverage before contract award under the Virginia Public Procurement Act
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Understanding Virginia Workers Compensation Requirements
The Virginia workers compensation requirements exist to make sure injured employees get medical care and lost wages without having to sue. For most owners, the Virginia workers compensation requirements come down to one number: the employee count that triggers the mandate, shown in the table above.
Once you hit that count, Virginia workers compensation requirements apply whether you planned for them or not, and the penalty for going without is real. If any part of the Virginia workers compensation requirements is unclear for your business, your state workers’-comp board can confirm the threshold, the exemptions, and how to get covered.
Next step: Once you know what your business in Virginia actually needs, comparing quotes from several carriers takes only a few minutes. Many owners do this right after they understand their state and trade requirements.
Frequently Asked Questions
Is workers’ comp required in Virginia?
Workers compensation insurance is required in Virginia for employers who regularly employ more than 2 employees (i.e., 3 or more), including part-time and seasonal workers; farm and horticultural employers are exempt unless they regularly employ more than 3 full-time workers
What is the penalty for not having workers’ comp in Virginia?
Civil penalty of up to 250 per day for each day of noncompliance, subject to a maximum of 50000 under Virginia Code 65.2-805; knowingly and intentionally failing to comply is a Class 2 misdemeanor under Virginia Code 65.2-806, punishable by up to 6 months in jail and a fine of up to 1000;
an uninsured employer is also personally liable for all workers comp benefits owed to injured employees including medical costs and lost wages
Who is exempt from Virginia workers’ comp?
Sole proprietors with no employees and no subcontractors; domestic servants (household workers performing care, comfort, and convenience of household members); farm and horticultural laborers when the employer has 3 or fewer full-time employees; casual employees performing work outside the employers usual trade or business; volunteers who are not paid or compensated; non-compensated officers of tax-exempt 501(c)(3) corporations or property owners associations
Official Virginia Sources & Resources
- Virginia Virginia Workers’ Compensation Commission: https://workcomp.virginia.gov/
- Virginia Workers’ Comp Statute: https://law.lis.virginia.gov/vacodefull/title65.2/
- U.S. Department of Labor — Workers’ Comp: dol.gov
- U.S. Small Business Administration: sba.gov
These Virginia workers compensation requirements were last verified against official sources in June 2026. Rules and penalties change — confirm the current figure with your state workers’-comp board or a licensed agent.
More Virginia Business Insurance Guides
Disclaimer: This guide is informational only and is not insurance, legal, or tax advice. Business Insure Guide is an independent educational resource, not an insurance agency or carrier. Coverage needs, legal requirements, and prices vary by business, profession, and state and change over time. Always verify the exact requirement and price with a licensed insurance agent and your state before you buy.