Do I need workers compensation insurance?

Workers Compensation Insurance Requirements in Virginia

In Virginia, workers compensation insurance is a key compliance and risk management element for most businesses with employees. Understanding when and how to obtain this insurance helps protect your business and employees.

When Is Workers Compensation Insurance Required?

• Employers with three or more employees: Virginia law requires businesses with three or more employees to carry workers compensation insurance.
• Construction industry: If you operate in construction, the threshold is lower; you must have coverage if you have one or more employees.
• Seasonal and part-time employees count: All employees, including part-time and seasonal workers, count toward these thresholds.

Operational Steps to Obtain Coverage

• Register your business: Ensure your business is properly registered with the Virginia State Corporation Commission.
• Choose an insurance provider: Contact authorized insurance carriers or use the Virginia Workers’ Compensation Commission resources to find coverage options.
• Maintain accurate payroll records: Payroll data affects premium calculations; keep detailed and up-to-date records.
• Report employee injuries: Establish processes for timely injury reporting and claims management to stay compliant.

Additional Operational Considerations

• Employee classification: Correctly classify workers to avoid misclassification penalties and ensure proper coverage.
• Compliance monitoring: Regularly review your insurance status and employee count to adjust coverage as your business grows.
• Integration with payroll: Automate insurance premium calculations through payroll systems to streamline recordkeeping and payments.

As of 2026, staying current with Virginia’s workers compensation requirements helps prevent fines and supports smooth business operations.