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What Workers' Compensation Is and What Virginia Employers Get in Return
Workers' compensation is a tradeoff built into Virginia law. Your employees get guaranteed medical treatment and wage replacement if they're hurt on the job, without needing to prove you did anything wrong. In return, you get protection from civil lawsuits over workplace injuries. An injured employee covered by workers' comp cannot sue you for their injury. That shield is the reason the system exists.
This tradeoff, sometimes called the "grand bargain," benefits both sides. Employees get faster, guaranteed care. Employers get predictable costs and legal protection. Without coverage, an injured employee can sue you directly in Virginia court, and there's no cap on what a jury can award.
Workers' comp is not optional for most Virginia businesses. If you regularly employ more than two people, the law requires you to carry it.
Workers' Comp Questions Virginia Employers Ask
How many employees trigger the workers' comp requirement in Virginia?
More than two. When your total reaches three employees, coverage is mandatory. Virginia counts part-time, seasonal, temporary, minors, trainees, immigrants, and working family members. If you hire subcontractors in the same trade, their employees are added to yours for the count.
Do I need workers' comp if I only hire subcontractors?
Possibly. If the subcontractors' employees combined with your own exceed two, coverage is required. And if a subcontractor you hire doesn't carry their own workers' comp, you can be held responsible for their employees' injuries under Virginia's statutory employer doctrine. Always request proof of active coverage from subcontractors before they start.
How much does workers' comp cost in Virginia?
It varies by industry, payroll, and claims history. Virginia small businesses pay an average of about $0.74 per $100 of payroll, but that rate can be much higher for construction, roofing, and other hazardous trades. Your experience modifier (E-Mod) also affects pricing. We compare carriers to find the best rate for your classification.
Can an employee choose their own doctor after a work injury?
In Virginia, the employer generally directs initial medical treatment through an approved panel of physicians. The employee can request a change through the Workers' Compensation Commission under certain circumstances, but the employer selects first. Having a panel in place before an injury happens keeps the process smooth for everyone.
What is an E-Mod and how do I lower mine?
An experience modification factor compares your claims history to others in your industry. An E-Mod below 1.0 means fewer claims than average, which lowers your premium. Above 1.0 means more claims, which raises it. To lower your E-Mod: invest in workplace safety training, report injuries immediately, get employees back to work quickly (even in modified roles), and review your classification codes to make sure they're correct.
Workers' compensation is one of the few insurance products Virginia actually mandates by law: any employer regularly employing three or more people must carry it (Va. Code § 65.2-101). Operating without required coverage carries a civil penalty of up to $250 per day of noncompliance, capped at $50,000, and knowingly skipping coverage is a Class 2 misdemeanor punishable by up to 6 months in jail and a $1,000 fine (Va. Code § 65.2-805, § 65.2-806). For injuries on or after July 1, 2026, the maximum weekly wage-replacement benefit is $1,507.01 (Virginia Workers' Compensation Commission).
