Most Virginia businesses need workers compensation once they grow past a couple of employees, general liability that clients and landlords insist on, and property or a package policy for their equipment. Workers comp is the coverage Virginia law actually forces on you: under the Virginia Workers' Compensation Act (Title 65.2) you must carry it once you regularly have more than two employees, meaning three or more, and Virginia counts part-time, seasonal, and family workers, corporate officers, LLC managers, and even a subcontractor's employees toward that number.
Who this is for: Virginia owners, from a one-van contractor in Richmond to a 20-person shop in Northern Virginia, who want to know what the state requires, what their contracts require, and how to buy it without overpaying.
The short version
- Workers comp is required once you regularly have more than two employees. That means three or more, under the Virginia Workers' Compensation Act (Title 65.2).
- The head count is wide. Part-time, seasonal, family members, minors, corporate officers, LLC managers, and a subcontractor's workers all count toward the three.
- Owners are treated two different ways. Sole proprietors, partners, and single-owner LLCs or corporations are not counted and can opt in; corporate officers and LLC managers are counted and can opt out.
- General liability is not a state mandate, but nearly every lease, client contract, and general contractor requires it before you can start work.
- You buy on the open market. Virginia has no state fund, so private carriers compete for your business, with an assigned risk plan as the backstop.
What Virginia actually requires
Only a couple of these are true legal mandates. The rest get required by the people you do business with, which in practice is just as binding.
| Coverage | Required by Virginia law? | Who needs it | What is at stake |
|---|---|---|---|
| Workers compensation | Yes, once you regularly have more than two employees (three or more) | Most employers with three or more counted workers | Fines up to 250 dollars a day, a shutdown order, a criminal charge |
| Commercial auto | Yes, if you own or use business vehicles | Any business-owned or leased vehicle | Registration problems, uninsured liability |
| General liability | No state mandate | Required by most leases, clients, and general contractors | Lost contracts, blocked from a job site |
| Professional liability (errors and omissions) | No state mandate | Consultants, tech, design, and accounting firms, often by contract | Uncovered claims, lost contracts |
| Commercial property or a package policy | No state mandate | Anyone with a space, inventory, or equipment; landlords often require it | Out-of-pocket losses, lease default |
What business insurance costs in Virginia
These are illustrative annual ranges for small Virginia businesses, not quotes. Your real price depends on payroll, revenue, claims history, and the exact kind of work. Virginia workers comp prices have been trending down: the State Corporation Commission approved a 12 percent cut in voluntary loss costs effective April 1, 2025, and NCCI filed a further decrease of roughly 7.7 percent for April 1, 2026, as of mid-2026.
| Business type | Workers comp (est.) | General liability (est.) | Package policy (est.) |
|---|---|---|---|
| Office or professional services | 500 to 2,200 dollars | 500 to 1,800 dollars | 1,000 to 3,400 dollars |
| Restaurant or cafe | 2,400 to 9,500 dollars | 1,400 to 4,800 dollars | 3,800 to 13,000 dollars |
| Landscaper or small contractor | 3,200 to 13,000 dollars | 1,100 to 3,800 dollars | Usually separate policies |
| Cleaning or janitorial | 2,800 to 10,500 dollars | 800 to 3,000 dollars | Usually separate policies |
| Retail store | 1,100 to 4,800 dollars | 800 to 2,800 dollars | 2,000 to 7,500 dollars |
The 14 workers comp questions Virginia owners ask
Workers comp is where most of the confusion and most of the risk live, so we wrote a plain-English guide for every common situation. Start with the Virginia workers comp overview, then jump to the one that matches your business:
- I own an LLC
- I am a sole proprietor
- I own a corporation (C-corp or S-corp)
- We are a partnership
- We are a nonprofit
- My workers are 1099 contractors
- I only have part-time or seasonal staff
- I only employ family members
- My team is remote or out of state
- What happens if I do not have it
- How much it costs
- How to get it, even if I have been turned down
- What I need for a contractor license
A Richmond example
Illustrative, not a quote. A general contractor in Richmond runs the business as an LLC with one working manager and two field employees, and regularly brings on a two-person subcontractor for framing. Virginia counts the manager, the two employees, and the subcontractor's workers, so the business is well past the more-than-two line and must carry a policy. When a builder they want to work for requires proof of coverage, the LLC already has a policy and can produce a certificate the same day. Because Virginia treats a general contractor as the legal employer of an uninsured sub's injured workers (a 'statutory employer'), the owner also collects a certificate from every sub before they start. See the trade detail on our workers comp for general contractors page.
Real questions Virginia owners ask
Do I need workers comp for my Virginia business?
If you regularly have more than two employees, meaning three or more, yes. Virginia requires coverage under the Workers' Compensation Act, and it counts part-time, seasonal, family, officers, managers, and even a subcontractor's workers toward the three.
How many employees before workers comp is required in Virginia?
Three. Virginia sets the line at more than two employees regularly in service, so two or fewer counted workers is under it and three or more is over it. Many owners are surprised how quickly they cross it once you count everyone.
Do I have to cover myself as the owner?
It depends on your setup. A sole proprietor, partner, or single owner of an LLC or corporation is not counted and can choose to opt in through the carrier. A corporate officer or LLC manager is counted by default and can file to opt out.
Is general liability insurance required in Virginia?
The state does not make general liability mandatory for most businesses, but landlords, clients, and general contractors almost always require it before they will sign with you, so in practice you usually need it.
What happens if I skip required workers comp in Virginia?
The Workers' Compensation Commission can fine you up to 250 dollars a day, up to a 50,000 dollar cap plus costs, order you to stop all business, and a knowing failure is a crime. An injured worker can also sue you directly.
Does Virginia have a state workers comp fund?
No. Virginia has no state fund and is not monopolistic. You buy from private carriers on the open market, and if no carrier will take you, an assigned risk plan run by the rating bureau NCCI is the guaranteed backstop.
I am based out of state with staff in Virginia. Do I need coverage here?
Generally yes, once you regularly have three or more workers in Virginia. A policy from another state that does not list Virginia usually will not satisfy the requirement, so Virginia needs to be added or a separate policy written.
Why Virginia owners choose Morrow
- We shop the right market for you. In Virginia you buy workers' comp on the open market from any private carrier licensed in the state, because there is no state fund, and if no carrier will take you the NCCI-run assigned risk plan (the Virginia Workers' Compensation Insurance Plan) is the guaranteed fallback, so we can shop your rate freely and still have a backstop for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Virginia guides
Every Virginia business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Virginia (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- What workers comp does not cover
- Virginia contractor workers comp
This guide is general information, not legal advice. Virginia rules and penalty amounts can change, so verify current requirements with the Virginia Workers' Compensation Commission or a licensed advisor before you rely on them. Last updated: July 2026.