When Businesses Need Virginia Workers Compensation Coverage

When Businesses Need Virginia Workers Compensation Coverage

The Commonwealth of Virginia requires any business employing two or more people to carry insurance designed to provide compensation for certain injuries or deaths related to their work. Virginia workman’s comp law mandates this coverage even when the employees are from out of state, or when they are providing labor or services in a temporary capacity. If they are working in Virginia in any function for any amount of time, they must be covered to satisfy the law.

Companies that aren’t based in Virginia have two options to bring themselves into compliance. The first is to purchase a new policy valid in the commonwealth. Doing so guarantees coverage that meets all Virginia’s workers compensation insurance standards. The second is to update an existing, out-of-state policy to include an endorsement for Virginia. The plan should be fully in line with Virginia requirements. In order to be valid, the endorsement must modify item 3A to include Virginia.

Businesses considering doing any work in Virginia would be smart to have coverage as a precaution, as even a very small enterprise easily can hit the two-employee minimum. Subcontractor employees, family members, and minors are all considered employees under Virginia workman’s comp law. Trainees and part-timers also count, practically guaranteeing the need for a compliant policy.