Sources reviewed October 27, 2026 · Confirm current rules with the agency
When coverage is required
Vermont generally requires workers' comp as soon as you hire one employee, including part-time staff. The Department of Financial Regulation's business guide explains your coverage options and your duty to get coverage. Check exceptions and owner rules before you assume a small or seasonal business does not need it.
Owners, contractors, and exceptions
Ask your insurer to review owners, officers, and anyone you treat as a contractor under Vermont's rules. A contract that calls someone independent is not enough on its own. Keep records of what people really do, and get the right opt-out or exclusion forms. Check these records again when your business type, staff, or work changes.
If an employee is injured
Workers should report injuries quickly. Vermont requires you to file Form 1 for an injury that needs medical care or causes at least one day off work. You have 72 hours to report, not counting Sundays and legal holidays. Follow the Department of Labor's current instructions on who to notify and how to file through your insurer. Reporting an injury does not mean you admit fault. If you disagree with the facts, say so separately, but still file the report.
Operating without coverage
Vermont's guide for business owners describes a fine of $50 per day, up to $5,000, before the state sends you a notice. If you do not get coverage within five days after the notice, the fine rises to $150 per day. Going without coverage also weakens your legal defenses if an injured worker sues you. In extreme cases, the state can order the business closed. Post the notice of coverage where workers can easily see it.
How to arrange coverage
Buy the right coverage from a licensed insurer or apply to self-insure. Ask your insurer how to submit Form 1, and keep proof that you did. Write down wages, work limits from the doctor, and any lighter duty you can offer, so your insurer can figure benefits and plan a return to work with current information.
Benefits and return-to-work planning
A work injury can lead to medical care, time off work, a lasting disability, or benefits for family members if a worker dies. Who qualifies, waiting periods, how wages are figured, and benefit limits all depend on state law and the facts of the claim. Ask your insurer which benefits it is looking at and what records it needs. Go by the doctor's work limits, not your own guess about what the worker can do. If you can offer lighter work, describe the duties and hours clearly and plan it with the doctor and your insurer.
Preparing an accurate cost estimate
Gather payroll by job and location, a description of each type of work, details on working owners, subcontractor records, and your past claims. Ask the insurer to confirm your job classes, how the rate is figured, any experience modifier, the minimum premium, fees, and audit terms. This site's calculator uses a base rate that you enter. It does not give a state-approved rate or a real quote. Compare offers using the same numbers, and track staff and work changes during the year so the final audit is easier.
Forms, posters, and notices
These links go straight to Vermont’s official forms. Your insurer can often send a poster with your policy details already filled in.
Weekly benefit limits
These limits cap the wage replacement checks an injured worker can get. Medical care is paid separately. Limits change every year, so check the source for the latest figures.
- Maximum
- $1,914 a week
- Minimum
- $638 a week
- Applies to
- July 1, 2026 to June 30, 2027
Check a contractor’s coverage
The agency does not offer a public coverage search we could confirm. Ask the contractor for a certificate of insurance, then call the insurer listed on it to confirm the policy is active and covers this state.
Owner exemptions and elections
Owner choices are usually made through your insurance policy. Ask your insurer which owners are included or left out, and get the answer in writing.
Frequently asked questions
Is workers' comp required in Vermont?
Yes once a business has one full-time or part-time employee in Vermont, including employees from out of state who work in Vermont.
Do business owners need workers' comp in Vermont?
Sole proprietors and partners are not required to cover themselves. Corporate officers can be excluded only with prior approval from the Vermont Department of Labor.
How long does an employee have to report a work injury in Vermont?
Employees should report quickly. The employer files Form 1 within 72 hours for injuries that need medical care or cause at least one day of lost work.
What happens if a Vermont business doesn't have workers' comp?
Vermont charges $50 per day (up to $5,000) before notice and $150 per day if coverage isn't bought within five days of notice. The state can also order the business closed.
How do I get workers' comp insurance in Vermont?
Buy from a licensed insurer or qualify for self-insurance, and post the notice of compliance.
How much does workers' comp cost in Vermont?
Cost depends mostly on your job class codes, the payroll in each class, your experience modifier, and the insurer's rates and minimum premium. Ask a licensed insurer or agent for the base rate for your class code in Vermont, then use this site's calculator for a rough estimate. Your final premium is set at the yearly audit.
Your next steps
Official sources & further reading
Vermont DFR: business owner's insurance guideVermont DOL: employer reporting responsibilityVermont statute: injury reportsVermont DOL: guide for business ownersThis summary is for learning, not legal advice. Exceptions and changes may apply. If anything here differs from the official agency or the law, they are what count.