Workers compensation requirements are determined by state governments, so while one state may require workers compensation, another may not.
Virginia requires all employers who have three or more employees, whether part-time or full-time, to offer workers compensation insurance. Subcontractors may be included in the count of employees for a Virginia business.
How Does Virginia Workers Compensation Work?
An employer seeking a workers compensation policy may purchase one through a private or independent insurer registered in Virginia. Out of state workers compensation insurance is not valid in Virginia, so any business in Virginia must be licensed with a Virginia insurance provider.
When an employer purchases this policy, they pay monthly or yearly premiums in exchange for coverage.
If an employee is injured on the job, workers compensation insurance provides compensation for the employee’s medical bills. It also helps prevent lawsuits regarding employee injuries.
What Happens if You Don’t Have Workers Compensation in Virginia?
Employers in Virginia who fail to provide the required amount of workers compensation may face penalties such as fines (up to $5,000 per occurrence). Businesses should purchase workers compensation insurance before hiring employees to avoid accidental uncovered lawsuits and other legal repercussions.
How Much is Workers Compensation in Virginia?
Workers compensation rates vary widely depending on several factors, such as:
- History of claims
High risk industries and businesses with a long history of workers compensation claims will generally pay higher premiums for workers compensation insurance. The more employees you have, the more you will pay for this insurance as well.
Employers can save money on workers compensation by making the workspace safer. All business buildings should have clear emergency exits, fire alarms, fire extinguishers and proper safety measures necessary for the industry.
Can a Workers Compensation Claim Be Denied in Virginia?
Independent insurers have the right to deny claims in Virginia for various reasons. Common reasons for a denied claim include uncovered injuries, failure to make payments and false claims.
Certain injuries are not covered under workers compensation, so be sure to check your policy’s limits and exclusions. Most policies do not cover injuries due to:
- Pre-existing conditions not directly related to the injury
- Illegal activities
- Activities that take place off the clock and/or off the business property
- Intoxication or influence of illegal drugs
- Misconduct or rough housing
Ask your insurance agent about your company’s necessary limits for workers compensation.
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