Vermont workers' compensation insurance: Your ultimate resource
Everything to know about workers’ compensation for
Vermont
businesses
What does workers’ compensation cover?
A standard workers’ comp policy covers four primary areas: medical expenses, lost wages, employer liability and ongoing rehabilitation. EverPeak policies ensure your crew gets the care they need to return to work safely while protecting your business from the costs of workplace accidents.
Medical care
Coverage for the necessary treatment resulting from a work-related injury or illness.
Lost wages
Partial pay for employees unable to work while recovering from an injury.
Legal protection
Financial support for your business if an employee files a lawsuit related to an accident.
Ongoing care
Rehabilitation and training to support employees re-enter the workforce, and ongoing benefits for permanent injuries.
Death benefits
Financial support for the families.
What are
Vermont
's workers' comp laws?
Known for its pastoral beauty and charm, Vermont boasts a captivating landscape of rolling hills, lush forests, and quaint towns steeped in New England tradition.
The Green Mountain State's economy thrives on diverse industries such as dairy farming, manufacturing, and tourism, attracting countless visitors annually.
In such a dynamic environment, safeguarding your business and employees is essential. Workers' compensation insurance provides crucial coverage for accidents and injuries, ensuring the welfare of your workforce and the sustainability of your business in Vermont's vibrant economy.
Here’s are some important things you need to know about Vermont workers’ compensation.
What is workers' compensation?
Workers' compensation is a state-mandated insurance program for almost all employers in Vermont with one or more employees. Coverage provides medical and financial protection for employees who suffer work-related injuries or illnesses.
Without workers' compensation, the costs associated with a work related injury could become the responsibility of your business.
Vermont workers' compensation rules and laws
According to the Vermont government website, “The Department of Financial Regulation - Insurance Division regulates issues relating to insurers and the insurance market and the Department of Labor deals with program administration and issues relating to claims.”
Businesses can obtain workers’ comp coverage through a partner like EverPeak Insurance. Alternatively, companies that meet the state’s requirements may also apply to be self-insured.
Employees can verify online if their employer has coverage.
Who is covered and exempt from
Vermont
workers' comp?
Who is covered?
Policies include protection for full and part-time workers.
Some exemptions from workers’ comp in Vermont include:
- Independent contractors
- Businesses with up to four corporate officers or limited liability company (LLC) members
- LLCs with no members
- Volunteers
Covered injuries and illnesses
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases developed over time due to job conditions.
Benefits provided
Vermont workers’ comp insurance provides three types of benefits for work injuries:
- Medical benefits
- Lost wages
- Death benefits
- Medical treatment for work-related accidents, injuries and/or illnesses
- Temporary disability benefits
- Permanent disability benefits
- Death benefits
Vermont workers’ compensation rates
Injured workers are paid 2/3 of their average weekly wage.
As of 2023, Vermont’s workers’ comp weekly benefit amount maximum is $1,700.
How much does workers’ comp cost in
Vermont
?
How do you file a workers’ compensation claim in
Vermont
?
Filing a workers' compensation claim
In the event of a work-related injury or illness:
Step 1: Employee reports injury to employer
Employees in Vermont should report their injury to their employer immediately but no later than seven days from the accident.
Step 2: Seek medical care
The employee should immediately seek medical attention. If an employee cannot work they must get a written doctor’s note.
Step 3: Receive benefits
If an employer’s insurance provider accepts the claim, the worker should begin receiving benefits to cover medical expenses and lost wages.
Step 4: Return to work safely or receive permanent disability benefits
Following their recovery, a worker is expected to resume work safely. In cases where the worker cannot fully recover to the extent that they can perform their job duties, they may be eligible to receive permanent disability payments.
Choosing a healthcare provider
In Vermont, an employer may direct the injured worker to a company doctor for their first medical visit. After that visit, the injured worker may pick their doctor by filing a Form 8 Change of Health Care Provider.
Compensation for missed work
If the employer’s workers’ comp insurer has accepted the claim and the injured worker’s doctor determines that the employee cannot work for more than three calendar days, the employee should begin to receive wage replacement benefits.
Resolving disputes
If a workers’ compensation claim is denied in Vermont, the employee will receive a Denial (Form 2) from their employer’s insurer.
To appeal this denial, the injured worker must complete Form 2’s second page with written responses and provide any required supporting information and documentation. Then, the employee must file the form with the Vermont Department of Labor Workers’ Compensation Division and give a copy to their employer’s workers’ comp insurer.
How to get workers' compensation
Insurance requirements for employers
Unless exempt, employers in Vermont must carry workers' compensation insurance or qualify for self-insurance. Compliance with this requirement is essential to protect both the employer and employees.
Choosing the Right Insurance Provider
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
FAQs
Enforcing safety protocols, providing proper employee training, maintaining a clean and hazard-free work environment, and regularly reviewing safety practices can significantly reduce workplace injuries.
Your premium is primarily determined by your industry payroll classifications, geographic location and total annual payroll. Your business’s safety history can also play a major role in determining your final rate. Three key factors influence your base insurance rate:
- Industry classification codes: Higher-hazard trades naturally carry higher baseline rates.
- Geographic location: Rates and statutory benefit structures fluctuate heavily by state lines.
- Historical safety record: Maintaining an accident-free workplace lowers your Experience Modification Rate (E-mod), resulting in built-in premium discounts.
Most states require businesses with employees to carry workers’ compensation insurance to stay compliant. Requirements vary by location, but having coverage ensures your business is protected and your team has access to benefits if an injury occurs.
Employees can verify online if their employer has coverage through the state’s online search tool.
Ideally, the incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensures the necessary steps are taken to initiate the workers' compensation claims process.
Whether you need coverage for contractors depends entirely on your state’s specific regulatory definitions and formal worker classification tests. Since misclassification regulations are highly complex and can lead to severe audits or stop-work orders, it’s vital to ensure your entire labor force is properly verified and protected based on the actual day-to-day work they do.
Learn more: Do independent contractors need workers’ compensation?
In most cases, employees in Virginia are barred from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
In Virginia, employers who fail to procure or sustain the appropriate workers' compensation coverage for their employees may face civil fines of up to $250 per day of non-compliance. Failure to adhere to this requirement can reach a maximum of $50,000 in fines.
Workers’ compensation is a form of insurance that benefits employers and employees in the case of a work-related injury or illness.
Why choose EverPeak for workers’ comp coverage?
EverPeak protects the hardest-working businesses in (state) with simple, reliable workers’ comp starting as low as $18 a month. Backed by over a century of specialized experience, customers get multi-state coverage, fast and easy claims support, and a vast network of brokers.