More than two. Virginia requires workers compensation for employers that regularly employ more than two part-time or full-time employees. Corporate officers, LLC managers, working family members and temporary, seasonal and part-time workers all count, and a subcontractor's employees can count when the sub does your trade or fulfills your contract.
The rule
The Virginia Workers' Compensation Commission says Virginia law requires an employer that regularly employs more than two part-time or full-time employees to carry Virginia workers compensation coverage. In practice, that means three is the number where most employers need to act.
Who counts
The Commission's list is broad. It includes corporate officers and LLC managers, even if they aren't doing regular work; family members who work for the business; temporary, seasonal and part-time workers; minors; and undocumented workers.
Subcontractors
If you hire subcontractors to do the same trade, business or occupation as yours, or to fulfill one of your contracts, the Commission says the subcontractor's employees are included when counting your total. A small contractor that relies on subs can cross the line without realizing it.
Penalties
An employer that fails to insure when required can be assessed a civil penalty of up to $250 for each day uninsured, up to a maximum of $50,000 plus costs. The Commission also notes that continued noncompliance can lead to an order prohibiting the employer from operating the business and to criminal prosecution.
Keeping count
Because part-time and seasonal workers count in Virginia, a business that adds extra hands for a busy season can cross the line without noticing. Count everyone you regularly employ, including officers and family members who work in the business, and count again when you bring on subcontractors for a large contract.
How Virginia compares
North Carolina's rule is three or more regularly employed, South Carolina's is four or more, and Maryland's generally applies with one or more employees. If you have workers in more than one of these states, make sure your policy lists each state where they work.
We write Virginia business insurance
We're licensed in Virginia and serve Virginia businesses by phone and online from our North Carolina offices. We'll help you count correctly, place coverage and prepare for the payroll audit.
In short
- Virginia requires workers comp when an employer regularly employs more than two employees.
- Officers, LLC managers, working family members and part-time workers count.
- Some subcontractors' employees count toward your total.
- Penalties reach $250 a day, up to $50,000 plus costs.
Related questions
- How many employees before I need workers comp in NC?
- How many employees before I need workers comp in South Carolina?
- Do subcontractors need workers comp in NC?
- What are Virginia's minimum auto liability insurance limits?
Coverage pages
Talk to us
Every situation is a little different. If you want someone to look at your own policy, call us at (910) 791-1011 or start a quote online. We're an independent, family-owned company founded in 1977, with eight offices in North Carolina, and we're licensed in North Carolina, South Carolina, Virginia and Maryland.
Sources
- Virginia Workers' Compensation Commission, Insurance Information for Employers
- Maryland Workers' Compensation Commission, Questions and Answers for Employers (Form C-98)
This page is general information, not a coverage determination or legal advice. Policies, rules and availability vary and change. Review your own policy or talk to your advisor.