Workers compensation policy information for the State of Virginia
for its Work Comp
Rules and Information
- District of Columbia
- New Hampshire
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- Rhode Island
- South Carolina
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Related Pages: More About Virginia Rules
Updated: Rating Payroll 02-14-2021
Authority/State Rating Bureau: NCCI
National Council on Compensation Insurance (NCCI)
901 Peninsula Corporate Circle
Boca Raton, FL 33487-1362
Private Insurance: Allowed
State Fund: There is no state fund.
Assigned Risk: Administered by NCCI
Assigned Risk Contact Information: NCCI – Virginia Assigned Risk Market ; Use this link to contact the Assigned Risk Plan, Pool or Residual Market Administrator for the state of Virginia.
Numerical Exceptions:Virginia law requires every employer who regularly employs three or more full-time or part-time employees to purchase and maintain workers’ compensation insurance. Employers with fewer than three employees may voluntarily come under the Act.
Individual Waivers Allowed:Yes on limited basis
Small Deductible Program Details:
Allowed: Yes – However it is optional that insurance carriers make available
Deductible Range: $100 – $10,000
Type: Medical and Indemnity
Effect on Experience Rating: Gross
Available In: Voluntary Markets
For More Information About How Deductible Programs Work
Sole Proprietor: Excluded from coverage/may elect to be included – Sole proprietors are considered owners of businesses and are not covered by workers’ compensation. However may elect to obtain coverage for workers’ compensation liability by purchasing insurance. If included in coverage a sole proprietors workers compensation payroll will be set at $38,300 as of 4-1-11, $47,100 as of 4-1-2012, $48,600 as of 4-1-2013, $49,700 as of 4-1-2014, $50,300 as of 4-1-2015. $51,800 as of 4-1-2017. $54,200 as of 4-1-2018. $56,300 as of 4-1-2019. $57,300 as of 4-1-2020. $59,100 as of 4-1-2021.
Partners: Excluded from coverage/may elect to be included – Partners are considered owners of businesses and are not covered by workers’ compensation. However partners may elect to obtain coverage for workers’ compensation liability by purchasing insurance. If included in coverage a partners workers compensation payroll will be set at $38,300 as of 4-1-11, $47,100 as of 4-1-2012, $48,600 as of 4-1-2013, $49,700 as of 4-1-2014, $50,300 as of 4-1-2015. $51,800 as of 4-1-2017. $54,200 as of 4-1-2018. $56,300 as of 4-1-2019. $57,300 as of 4-1-2020. $59,100 as of 4-1-2021.
Corporate Officers: Included in coverage/may elect to be partially exempt – A corporation’s officers may choose to reject workers’ compensation coverage for accidents, but not for occupational diseases. To do so, officers must file a “Notice of Rejection” with the insurer and with the Commission. If the officers are paid regularly, they are nevertheless counted as employees to determine jurisdiction under the Act. If included in coverage a corporate officer workers compensation payroll is banded between a min/max of $23,400/$93,600 as of 4-1-11, $23,400 / $98,800 as of 4-1-2013, $26,000 / $98,800 as of 4-1-2014, $26,000 / $98,800 as of 4-1-2015. $500 min / $2,000 max per week as of 4-1-2017. $500 min / $2,100 max per week as of 4-1-2018. $550 min / $2,200 max per week as of 4-1-2019. $550 min / $2,200 max per week as of 4-1-2020. $550 min / $2,300 max per week as of 4-1-2021. (Note: For non-profit corporations under 501(c)(3) of Title 26 of the U.S. Code, unpaid officers are not considered employees. Unpaid officers need not formally reject coverage and are not counted as employees in determining jurisdiction under the Act.)
LLC Members: Members of a limited liability company (LLC) are considered to be owners of a company and are not covered by workers’ compensation unless specifically covered by an insurance policy or either elected or appointed as a manager. The manager of an LLC is treated as a corporate officer under the Act.
Election or Rejection of Coverage Forms:
- Form 16a – Officer/Manager Rejection Form
- Form 17a – Officer/Manager Revocation of Prior Rejection of Coverage
- Be sure to contact the Virginia Workers Compensation Commission> with any questions you may have about exclusion or inclusion in coverage for the state of Virginia.
Other Virginia Workers Compensation Forms: Access Virginia 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: Basic Guidelines for Contractors and Subcontractors:
Warning: Neither the Workers’ Compensation Commission nor the State Corporation Commission of Virginia can provide legal advice on individual contractor/subcontractor situation so we likewise can only provide you with these basic guides. The status of an independent contractor, a subcontractor, and an employee must be determined based upon the facts of each case. The following are general guidelines only.
Employees versus independent contractors: The Workers’ Compensation Act of Virginia defines an employee as a person under written or implied contract of hire “except one whose employment is not in the usual course of the trade, business, occupation or profession of the employer.” In distinguishing between an employee and an independent contractor, some important considerations are (1) the right to hire, (2) the power to dismiss, (3) the obligation to pay wages, and (4) the power to control.
Independent contractors are not automatically eligible for workers’ compensation: An independent contractor, who is generally a sole proprietor or partner, is not entitled to workers’ compensation benefits unless:
- a formal election of coverage has been made; or
- written agreement has been reached among the independent contractor, the employer, and the insurance carrier that coverage will be provided.
Employees of contractors are often eligible for workers’ compensation: The regular employees of the independent contractor, however, are entitled to workers’ compensation benefits so long as the independent contractor employs three or more employees.
Statutory employers: When a sole proprietor, partnership, or corporation contracts to perform work or provide services that are part of the same trade, business, or occupation of the employer, a contractor/subcontractor relationship is established. The contractor becomes the statutory employer of the employees of the subcontractor. When the statutory employer is subject to the Virginia Workers’ Compensation Act by virtue of having three or more direct employees or employees of subcontractors, the statutory employer or its insurance carrier becomes liable for the payment of workers’ compensation benefits to the injured employees of the subcontractor. This is true whether the subcontractor fails to carry workers’ compensation insurance as required by law, or is not required to have workers’ compensation insurance.
Effects on statutory employer: The subcontractor’s employees are considered employees of the contractor both for liability, and for determining whether the general contractor has three or more employees and must therefore provide workers’ compensation coverage under Virginia law.
Effects on subcontractors: Since a potential statutory employer relationship exists for any particular job done through subcontractors, and since the insurance carrier does not have the right to inspect the employment records of the subcontractor, carriers have tended to assess a premium on the employer for his or her subcontractors. Potential statutory employers have often responded by requiring a subcontractor to provide proof of workers’ compensation insurance coverage, or by having a percentage of the contract cost withheld to offset the potential cost of insurance premiums.
The fact that a contractor withholds a percentage of the contract cost does not afford any coverage to the subcontractor.
Special Notes:How to secure workers compensation insurance in Virginia:
- Purchase and maintain a workers’ compensation policy from a company licensed in Virginia;
- Apply to the Virginia Workers’ Compensation Commission for approval as an independent self-insurer;
- Become a member of a group self-insurance association licensed by the Virginia State Corporation Commission; or
- Enter into an agreement with a professional employer organization as provided in Section 65.2-801.A.4 of the Code of Virginia
Experience Rating Eligibility: Employers in Virginia become eligible for an experience modification rate or EMR when they meet one of these triggers:
- $7,000 in policy premium is generated during the last year or last two years.
- $3,500 is the average policy premium generated for more than two years.
Virginia Workers Compensation Subrogation: The State of Virginia provides information about workers compensation subrogation in it’s state statute 65.2-309. This section of Virginia code is titled; Lien against settlement proceeds or verdict in third party suit; subrogation of employer to employee’s rights against third parties; evidence; recovery; compromise. You find this statute under the 65.2 Workers Compensation, Chapter 3, Application and Effect of Title. You can view and access this statute online by using the link below, you will be taken to this specific section.
Virginia Workers In Other States; Other States Workers In Virginia; Extraterritorial; Reciprocity; Non-Compliance: When a Virginia worker is working temporarily in another state, workers compensation coverage for that worker is governed by the extraterritorial provisions found in Virginia 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 Virginia 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 important topic!
For More Information Contact: The Virginia Workers Compensation Commission below.
Regulated By: Virginia Workers Compensation Commission
Virginia Workers’ Compensation Commission
1000 DMV Drive
Richmond, Virginia 23220
Phone: 877-664-2566 (Toll-free) Fax: (804) 367-9740
Virginia Workers Compensation Commission
Bureau of Insurance (BOI)
1300 E. Main St.,
P.O. Box 1157
Richmond, Virginia 23218
(Virginia Only) 1-800-552-7945
(Nationwide) 1-877-310-6560 or 804-371-9741
Virginia Bureau of Insurance
Workers compensation statute can be found here: Use this link to access Virginia statutes:
WORKERS COMPENSATION CONSULTANT
Voice: (573) 489-8323
Fax: (573) 447-4998