Vermont Workers Compensation Insurance

Vermont Workers Compensation Insurance Rules

1. Does my Vermont business need workers compensation insurance?

In Vermont, if you hire one(1) or more employees on a full or part-time basis, you must provide workers compensation insurance coverage.

2. In Vermont is there any exemptions from carrying workers compensation insurance?

If you are the sole proprietor or partner of an unincorporated business, you are not required to have workers compensation insurance coverage, but you may choose to have it.

Officers of a corporation may choose to be excluded from worker’s comp coverage, but must obtain approval from the Vermont Department of Labor & Industry.

A person engaged in amateur sports, persons engaged in agriculture or farm employment for an employer whose aggregate payroll is less than $10,000 in a calendar year, certain elected officials and volunteers.

3. Does Vermont workers compensation law have specific requirements for subcontractors/contractors and sole proprietors?

Vermont Law does not require a single individual acting as a contractor to carry worker’s compensation insurance. However, any contractor with one or more employees must provide coverage for those employees.

If you use independent contractors in your business, make sure you agree up front and in writing who is responsible for carrying worker’s comp insurance. You will be responsible for providing workers compensation insurance if the independent contractor (1) doesn’t have coverage, or (2) does not meet the definition of a contractor under law.

The person working for you is more likely to be regarded as a contractor if:

The person is engaged in a distinct occupation or business of his or her own
The work being performed is different from your normal line of business

Employee Leasing and Staffing Companies

Using a PEO or staffing company to obtain your workers compensation may be a good alternative to purchasing your own workers compensation policy. Leasing companies handle your payroll, w-2 forms, unemployment and workers compensation claims. In many cases the down payment required to obtain a new workers compensation policy is high and many new businesses cannot afford the down payment. Another advantage, based on my experience, is that you will never get audited because you pay as you go for your coverage. We represent numerous leasing and staffing companies who in many cases offer deep discounts on your workers compensation coverage that you will not find from standard workers compensation insurance carriers.

USL&H & The Jones Act

We have excellent workers compensation programs for these specialty risks requiring this endorsement. If you are unsure and want to read either the USL&H or Jones Act I have provided helpful links below for you convenience. I have found them to be the most detailed and good resources on the laws.

If you need a quote that requires this coverage

Click Here for a USL&H Quote

Click here for the complete USL&H Act, courtesy of Cornell University.
Click here for: USL&H & Jones Act Information
Defense Base Act Division of Longshore and Harbor Workers' Compensation

Vermont Workers Compensation Insurance

Vermont Workers Compensation Links

News and Legislative Updates
Vermont Workers Comp. Statutes
Archived Statutes Center
Vermont Workers Compensation Forms
Vermont Workers Comp. Rules 1-46
Vermont Administration Fund Rules
Vermont Compensation Fee Schedule
Quick Facts and Contact Information