What insurance is required when hiring workers?

Required Insurance When Hiring Employees in Virginia

When hiring employees in Virginia, businesses must secure specific insurance coverages to comply with state regulations and protect both employees and the company.

Workers' Compensation Insurance

Virginia law requires most employers to carry workers' compensation insurance. This insurance covers medical expenses and lost wages if an employee is injured or becomes ill due to work-related activities.

• Employers with three or more employees (full-time or part-time) generally must have this coverage.
• Coverage is mandatory from the first day of employment.
• Self-insurance is an option for qualifying employers but requires approval from the Virginia Workers' Compensation Commission.

Unemployment Insurance

Employers must register with the Virginia Employment Commission (VEC) to pay unemployment insurance taxes. This insurance funds benefits for workers who lose their jobs through no fault of their own.

• Applies to employers with at least one employee working 30 days or more in a calendar year.
• Payroll systems should track wages and report quarterly to the VEC.

Additional Insurance Considerations

• Disability Insurance: Virginia does not require disability insurance, but some employers offer it voluntarily.
• Health Insurance: Under federal law (Affordable Care Act), employers with 50 or more full-time employees must offer health insurance.
• Liability Insurance: While not required by state law for hiring, general liability insurance is recommended to protect against workplace claims.

Operational Tips

• Integrate insurance compliance into your hiring and onboarding processes.
• Work with a licensed insurance broker familiar with Virginia requirements.
• Maintain accurate payroll and employee records to support insurance reporting.
• Review insurance coverage annually to ensure it matches your current workforce size and risks.