The A-Z guide to Vermont Workers' Comp

Understanding Vermont Workers’ Compensation Rules

Name: Workers' Compensation Insurance for Vermont
Brand: Kickstand Insurance
Rating: 5 (37 reviews)

According to Vermont’s workers’ compensation rules, any business with employees must have a workers’ compensation policy. Workers’ comp insurance enables injured workers to get the care they need if injured on the job until they are ready to return to work.

Required with

1 employee

Self-employed workers aren’t required to have workers’ comp insurance.

The following are exempt:

Family members related to an employer
Domestic household workers
Farm workers who make less than $10,000 annually
Casual workers, interns, or volunteers with irregular hours or non-recurring schedules
Commission-based real estate agents
Amateur sports participants or officials

Is workers’ comp insurance required in Vermont?

Yes, all businesses in Vermont must provide workers’ comp insurance for all workers, beginning with hiring the first employee.

Do you need workers’ compensation coverage if you’re self-employed?

According to Vermont workers’ compensation rules, self-employed workers aren’t required to have workers’ comp insurance. If they would like to be covered by a policy, there are options available that would give them the same coverage.

Workers’ comp insurance coverage can be an asset to self-employed business management if the work is often contracted and risky. Sole proprietors and contractors should consider independent workers’ comp insurance for heavy-lifting jobs or work with dangerous components.

Who is exempt from Vermont workers’ comp requirements?

In Vermont, the following types of workers are exempt from workers’ comp insurance laws.

Family members related to an employer
Household domestic workers, like maids and nannies
Farm workers who make less than $10,000 annually
Casual workers, interns, or volunteers with irregular hours or non-recurring schedules
Commission-based real estate agents
Amateur sports participants or officials

Corporate officers, LLC members, partnerships, and sole proprietors are also automatically excluded from Vermont workers’ comp insurance. However, they may opt-in with independent coverage.

How much is workers’ comp coverage in Vermont?

Your Vermont workers’ comp rate will depend on the following factors:

The type of business you have
The size of your payroll
Your safety record
Claim history

How can Vermont small business owners save money on workers' comp?

Have an official drug and alcohol free program. Keeping the workplace drug and alcohol free is proven to reduce the likelihood of injury.
Offer a return-to-work program. When someone is injured on the job, offer them a customized plan to return to work with medical clearance to reduce claim costs. Modify their duties to workloads that can be completed with their injury history in mind.
Double check that your employees are classified correctly. There can be similar class codes that have drastically different rates. Make sure your policy has the right one for your employees. Also check if a separate clerical rate would apply to save even more money.

Routinely review your insurance policies to ensure you have the right payroll and classifications. Workers’ comp insurance in Vermont should accurately reflect a business’s current risks and employee workloads, which can fluctuate over time.

Get an Instant Quote

How does workers’ comp work in VT?

The process to buy workers’ comp insurance in every state is similar but the rates will depend on your state and industry.

To get started, you’ll have to reach out to an insurance agent or start an online quote. They will need information about your business and payroll. Then you’ll get some policy quotes and will have to finalize on an insurance provider.

The insurance premium is based on your estimated payroll amount for the next 12 months.

At the end of your term (most often 12 months), the insurance company will conduct an audit of your payroll and see exactly what you paid your employees.

If your payroll is lower than the number that you projected, you receive a refund. If it’s more than projected, you’ll owe the amount for the difference in coverage.

If any employees are injured during the policy term, the insurance company will cover the expenses.

What does workers’ comp cover in Vermont?

Workers who file a workers' comp claim in Vermont can receive benefits for the following:

Medical bills

Lost Wages

Death Benefits

Workers' comp coverage also protects employers from legal action. This means that if an employee sues your business because of a workplace injury, the insurance will cover the legal costs of the case.

How to get workers’ comp insurance in Vermont

If you are a business with employees in Vermont, the easiest way to get insurance is through an agent, or an online agency. They will be able to guide you on how to get the best coverage at an affordable price.

If you have trouble getting coverage from a typical insurance company, you will have to use the state fund. They insure businesses that are in very high risk industries or have a bad claims history.

If you are a very large company, you may be able to self insure. This is usually only financially viable for very large profitable businesses.

What can happen if I don’t have workers’ comp insurance in Vermont?

$100 in non-compliance penalties for the first seven days
$150+ in non-compliance penalties for every day after seven days
Business shutdowns until compliance with Vermont workers’ compensation rules
Misdemeanor charges for continued belligerence and non-compliance

Get an Instant Quote

FAQS

What are workers’ comp death benefits in VT?

Up to $10,000 in funeral and burial expenses.
66% of lost wages from the deceased worker’s paycheck for a spouse until age 62 or remarriage.
76% of lost wages from the deceased worker’s paycheck for a spouse with children until age 62 or remarriage.

How do workers’ comp settlements work in Vermont?

Per Vermont workers’ compensation rules, settlements are agreements between an injured worker, an employer, and an insurance carrier. These agreements are submitted in writing and structured into monthly payments or a lump sum to cover medical expenses, lost wages, and everyday life costs.

The settlement process is voluntary, beginning when a worker reports and files a Claim for Compensation with an employer, the insurance carrier, and the Vermont Department of Labor. The settlement considers earned income, and how much a worker would lose with time off, injury severity, and expected recovery time.

Not every workers’ compensation claim results in a business-to-employee settlement. For those that do, the settlements must be approved by the Vermont Department of Labor.

What are the statute limitations regarding workers’ comp in VT?

Injured workers have 30 days after an accident to report the injury to their employer and two years from the date of injury to file a workers’ compensation claim.

How do I get a workers’ comp insurance policy with Kickstand Insurance?

Start by filling out a short online form about your business. We’ll use that info to get you an estimated quote. Then, one of our experienced agents will contact you to review the quote and make sure you are getting the absolutely lowest rate possible for your business. Once the quote is finalized, you’re ready to buy the policy - often with coverage starting that day!

Ready: Fill out an online form. It only takes 5 minutes!
Set: One of our agents will contact you to review the quote.
Go: You can get covered starting today!

Learn more about Workers' Comp in Vermont

No items found.

Why use Kickstand to
get workers' comp insurance?

Speed + Service + Experts

Document with workers’ compensation insurance quote surrounded by insurance icons

Unlike other online insta-quote systems,
here your quote is reviewed by experts

Why does it matter?

Avoid surprise bills at audit
Make sure all your employees are properly covered
Protect yourself from lawsuits

What do we check?

Business categorized correctly
Employees job roles
Special discount opportunities