Virginia (VA) · Workers' compensation
Virginia workers' compensation requirements
Required once a business regularly employs three or more workers, with subcontractor employees often counting toward the total.
Three or more employees, counted broadly — part-time, seasonal, family members, and in many cases a subcontractor's workers can all count toward the three-employee trigger.
Competitive private market with an assigned-risk plan available for employers who cannot obtain voluntary coverage.
Required once a business regularly employs three or more workers, with subcontractor employees often counting toward the total.
Who has to carry coverage in Virginia
Virginia is one of the states that still uses an employee-count threshold: businesses that regularly employ three or more workers must carry workers' compensation. That sounds like breathing room for very small employers, but the counting rules are broader than most owners expect and the exemption evaporates faster than they assume.
The part that catches contractors is that a subcontractor's employees can count toward your three. A two-person company that regularly brings on an uninsured two-person sub crew can find itself over the threshold and uninsured at the same time — a combination the Virginia Workers' Compensation Commission treats seriously, particularly when it surfaces after an injury.
Part-time and seasonal workers count the same as full-time ones, and family members on payroll are generally counted as well. Because the test is about who you regularly employ rather than who is on the clock on a given day, businesses with fluctuating crews should assume they are covered by the requirement and plan accordingly rather than trying to stay just under the line.
Sole proprietors, partners and owners
Sole proprietors and partners are generally not counted as employees and are not required to cover themselves, though they may elect coverage. Corporate officers and LLC members are typically counted as employees for the three-employee test and are covered unless a valid exclusion election is filed, so a three-officer corporation can hit the threshold without hiring anyone.
Independent contractors and subcontractors
Virginia's statutory-employer rules mean a general contractor can be responsible for an uninsured subcontractor's injured workers, and those workers can count toward the contractor's own employee threshold. Always collect and verify certificates of insurance before a sub starts, and re-verify on long projects so a mid-job lapse does not become your claim.
What happens if you go uninsured
- Civil penalties can be assessed for each day a business operates uninsured, with substantial maximums.
- The employer can be ordered to pay an injured worker's full benefits directly.
- The Commission can pursue enforcement action that affects the ability to operate.
- Uninsured status can disqualify a contractor from bidding and jeopardize licensing.
Virginia quirks worth knowing
Subcontractor employees count
Workers employed by an uninsured subcontractor can be counted toward your three-employee threshold, pulling small contractors into the requirement unexpectedly.
Officers count toward the total
Corporate officers are generally counted as employees, so a small corporation can reach three without any traditional hires.
'Regularly employed' is the test
The standard looks at the normal course of business rather than a single day's headcount, so intermittent staffing rarely avoids the requirement.
Virginia workers' comp FAQs
General guidance, not legal advice. Workers' compensation rules change and apply differently depending on your entity type, class codes and contracts. Verify current requirements with the Virginia state agency that administers workers' compensation, or talk with a licensed Provident agent before making a coverage decision.
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