Vermont workers compensation policy information for the State of Vermont

Related Pages: More About Vermont Rules

State: Vermont

Updated: Rating Payroll 08-10-2023

Authority/State Rating Bureau: NCCI

National Council on Compensation Insurance (NCCI)
901 Peninsula Corporate Circle
Boca Raton, FL 33487-1362

Compulsory: Yes

Private Insurance: Allowed

Self-Insurance: Allowed

State Fund: None.

Assigned Risk: Administered by NCCI. Contact the Vermont Department of Insurance for information.

Numerical Exceptions: None. Unless you have been approved to self-insure by the Department of Labor, you must buy workers’ compensation insurance if you hire one or more employees on a full or part time basis in Vermont, or you hire employees outside the state but they work for you in Vermont.

Individual Waivers Allowed: Yes, limited basis

Small Deductible Program Details:
Allowed: Yes – Mandatory however only at the written request of the employer.
Deductible Range: At least $500
Type: Medical and Indemnity
Effect on Experience Rating: Unknown
Available In: Voluntary and Residual Market
For More Information About How Deductible Programs Work

Sole Proprietor: Excluded from coverage/may elect to be included – If included, the sole proprietors workers compensation payroll will be set at a flat amount of $39,800 as of 4-1-11, $38,900 as of 4-1-2012, $39,700 as of 4-1-2013. $40,400 as of 4-1-2014. $41,500 as of 4-1-2015. $42,400 as of 4-1-2016. $44,400 as of 4-1-2018. $45,400 as of 4-1-2019. $23,500 as of 4-1-2020. $24,300 as of 4-1-2021. $26,700 as of 4-1-2022. $27,800 as of 4-1-2023.

Partners: Excluded from coverage/may elect to be included – If included, the partners workers compensation payroll will be set at a flat amount of $39,800 as of 4-1-11, $38,900 as of 4-1-2012, $39,700 as of 4-1-2013. $40,400 as of 4-1-2014. $41,500 as of 4-1-2015. $42,400 as of 4-1-2016. $44,400 as of 4-1-2018. $45,400 as of 4-1-2019. $23,500 as of 4-1-2020. $24,300 as of 4-1-2021. $26,700 as of 4-1-2022. $27,800 as of 4-1-2023.

Corporate Officers: Included in coverage/may elect to be exempt – If included in coverage, corporate officers workers compensation payroll is banded between the min/max of $39,000/161,200 as of 4-1-11, $39,000 / $156,000 as of 4-1-2012, $39,000 / $161,200 as of 4-1-2013. $41,600 / $161,200 as of 4-1-2014. $41,600 / $166,400 as of 4-1-2015. $800 min / $3,300 max per week as of 4-1-2016. $850 min / $3,400 max per week as of 4-1-2018. $850 min / $3,500 max per week as of 4-1-2019. $450 min / $3,600 max per week as of 4-1-2020. $450 min / $3,700 max per week as of 4-1-2021. $500 min / $4,100 max per week as of 4-1-2022. $550 min / $4,300 max per week as of 4-1-2023.

LLC Members: Treated same as corporate officers.

Vermont Election or Rejection of Coverage Forms: Vermont Application to Exclude Corporate Officers or LLC Members From Coverage Form

Other Vermont Workers Compensation Forms: Access Other Vermont Workers Compensation Forms

Notes About Forms: Be sure to check with your insurance company for additional forms they may use for inclusion and exclusion.

Contractors: If you use independent contractors in your business, make sure you agree up front and in writing who is responsible for carrying workers’ compensation insurance. You will be responsible for the insurance if the independent contractor (1) doesn’t have coverage, or (2) does not meet the definition of a contractor under law. It is important to understand that the independent contractor needs coverage any time they have a worker on the job, even temporarily.

  • Does the contractor have coverage?
    • The law does not require a single individual acting as a contractor to carry workers’ compensation insurance, but any contractor with one or more employees must provide coverage for those employees. Contractors who carry insurance should be able to show you a document called a certificate of workers’ compensation insurance as verification, as distinguished from many other types of certificates of insurance. Make sure the period of time covered by the certificate is sufficient to complete the project. If you have any reason to question the certificate, you should call the insurance company that issued it.
    • A word of caution: If the coverage lapses before a project is finished, the contractor must renew it, or else responsibility for the coverage will default to you. You would not necessarily know about any lapse, but you would then be liable for any penalties connected to failure to provide coverage. (See box regarding penalties.) Since these penalties can be serious, to be safe, you may simply want to purchase coverage for all your contractors while they are on the job. This may also be wise if you have any uncertainty about whether someone qualifies by definition as an independent contractor.
  • Does the independent contractor qualify by definition?
    • Calling someone a contractor does not automatically relieve you of the responsibility to carry workers’ compensation insurance. The law places the burden of proof on the employer to show that the injured person qualifies as an independent contractor vs. an employee. A good rule of thumb is to regard anyone you pay as an employee. However, the law does look at specific circumstances in favor of one definition or the other. In a contested case, the following test factors would influence a courts decision:

The person working for you is more likely to be regarded as your employee (vs. a contractor) if:

  • You have the right to control the way the work is done
  • You supply the tools and equipment for the work
  • You direct the scheduling of the work
  • You pay according to time worked, rather than cost per job
  • The work being performed is the type normally carried out by an employee in the usual course of business
  • The work activities are an integral part of the employers regular business

The person working for you is more likely to be regarded as a contractor (rather than an employee) if:

  • The person is engaged in a distinct occupation or business of his or her ownli>
  • The work being performed is different from your normal line of business

Special Notes:Generally, everyone — including officers of corporations — is covered by the Vermont Workers compensation Act. Some exceptions are as follows:

  • If you are the sole proprietor or partner of an unincorporated business, you are not covered, and you are not required to have coverage, but you may choose to have it.
  • Officers of a corporation may choose to be excluded from workers’ compensation coverage, but must obtain prior approval from the Vermont Department of Labor.
  • You may choose to include a family member who lives with you. You should make clear to your agent who is to be covered when the policy is issued. You do not have to obtain approval from the Vermont Department of Labor.

In addition, the following people are not required to be covered by workers’ compensation insurance:

  • A person whose employment is of a casual nature, and not for the purpose of the employers trade or business.
  • A person engaged in amateur sports, even if an employer contributes to the support of such sports.
  • A person engaged in agriculture or farm employment for an employer whose aggregate payroll is less than $2,000 in a calendar year, unless the employer chooses to provide coverage.
  • Certain elected officials are excluded.
  • Volunteers.

Experience Rating Eligibility: Employers in Vermont become eligible for an experience modification rate or EMR when they meet one of these triggers:

  • $8,000 in policy premium is generated during the last year or last two years.
  • $4,000 is the average policy premium generated for more than two years.

Vermont Workers Compensation Subrogation: The State of Vermont provides information about workers compensation subrogation in Vermont state statute Title 21.624. It is found under the Vermont Labor Code, Chapter 9 Employers Liability and Workers Compensation. This statute is known as; Dual liability; claims, settlement procedure. It’s easy to view this code online by following the link we’ve provided below. Access this link and you will be taken to this Vermont Statute.

Vermont – Workers Compensation Subrogation

Vermont Workers In Other States; Other States Workers In Vermont; Extraterritorial; Reciprocity; Non-Compliance: When a Vermont worker is working temporarily in another state, workers compensation coverage for that worker is governed by the extraterritorial provisions found in Vermont statutes. When allowed, extraterritorial provisions allow benefits for an injured worker to apply as if the worker was in their primary state. Not all states provide Extraterritorial Provisions. Reciprocity governs coverage for a worker from another state who is working temporarily in Vermont. Employers who have employees temporarily working in Vermont from another state must verify the coverage requirements of Vermont. Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. Please contact your state authority with your specific questions concerning this topic!

For More Information Contact: The Vermont Department of Labor Division of Workers Compensation

Regulated By: Vermont Department of Labor

Division of Workers Compensation and Safety
National Life Building – Drawer 20
Montpelier, Vermont 05620-3401
phone: (802) 828-2286 fax: (802) 828-4248
Division of Workers Compensation

Workers compensation statute can be found here:

Access to Vermont Workers Compensation Statute

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Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. No warranty as to the accuracy or completeness of this information is provided or to be implied. You must verify this data before use with the individual governing authority for this state. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.

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