Virginia licenses contractors through the Department of Professional and Occupational Regulation, and workers compensation is tied directly to your ability to work. Once you regularly have more than two counted workers you must carry comp under the Workers' Compensation Act, and separately, no county, city, or town can issue or renew your local business license unless you certify that you carry it. A general contractor also carries its own exposure for an uninsured subcontractor's injured workers. So for most Virginia contractors, workers comp is not optional paperwork, it is what lets you get licensed locally and stay on the job.
Who this is for: Virginia contractors and tradespeople sorting out what licensing and insurance their work actually requires.
The short version
- Virginia contractor licenses are issued by the Board for Contractors in three classes, A, B, and C, by the dollar value of work you take on.
- Any contracting business with more than two counted workers must carry workers comp under the Act.
- No locality can issue or renew your local business license unless you certify workers comp compliance.
- The contractor certificate of coverage is a specific Commission form (Form 61A); a knowingly false one is a crime.
- If you hire subcontractors, Virginia can hold you responsible as their legal employer (a 'statutory employer') for an uninsured sub's injured worker.
What Virginia actually licenses
Virginia issues a statewide contractor license through the Board for Contractors, tiered by the dollar value of the work you perform: Class C for the smallest projects, Class B in the middle, and Class A for the largest. The exact dollar thresholds and any general-liability minimums are set by regulation and change from time to time, so confirm the current figures with the Board rather than relying on an old number. Certain trades, such as electrical, plumbing, and HVAC, also hold their own tradesman licenses. Whatever your class or trade, the workers comp rule is the same: once you regularly have more than two counted workers, you must carry a policy.
| License or work | Who issues it | Workers comp |
|---|---|---|
| Contractor license, Class A, B, or C | DPOR Board for Contractors, by dollar value of work | Required once you have more than two counted workers |
| Tradesman license (electrical, plumbing, HVAC) | DPOR | Same workers comp rule applies |
| Local business license | Your county, city, or town | Cannot be issued or renewed without certifying comp compliance |
| Any contractor hiring subcontractors | Depends on trade | Also the statutory employer of an uninsured sub's injured workers |
Why the local business license is the firm hook
Even beyond the Act itself, Virginia ties workers comp to your local business license. State law bars any county, city, or town from issuing or reissuing a contractor's business license unless the contractor certifies that it carries the required coverage and will keep it during the license period. You make that certification on the Commission's contractor certificate of workers' compensation insurance, Form 61A, filed with the local Commissioner of the Revenue. Signing a knowingly false certificate is itself a crime. So a Virginia contractor over the more-than-two threshold simply cannot get or renew a local business license without a comp policy in place, independent of the Board's own rules.
The subcontractor exposure
A general contractor carries a second exposure that catches people off guard. Because Virginia treats a general contractor or owner who subcontracts work that is part of its trade or business as the statutory employer of the sub's workers, an uninsured sub's injured worker can look up the chain to you for benefits, and you can then try to recover from the sub. Combined with the rule that a sub's employees count toward your own more-than-two number, this is why Virginia general contractors count their subs, require a certificate of coverage from every one before work starts, and keep their own policy current.
A Leesburg example
Illustrative, not a quote. A Leesburg electrician holds a Class B contractor license and a tradesman license and runs the business with three employees. Because he has more than two counted workers, Virginia requires workers comp, and his county will not renew his local business license unless he certifies that coverage on Form 61A. When he subcontracts a low-voltage job to another shop, he collects that shop's certificate first, so an uninsured sub's injury cannot become his responsibility as the statutory employer. We handle his employee coverage, file the certification he needs for the license, and confirm his sub certificates are on hand. See our workers comp for electricians page.
Real questions Virginia owners ask
What insurance does a Virginia contractor license require?
Workers comp is the big one. Once you regularly have more than two counted workers you must carry it under the Act, and no locality can issue or renew your local business license unless you certify that you have it.
Does Virginia have a state contractor license?
Yes. The Department of Professional and Occupational Regulation issues contractor licenses in three classes, A, B, and C, based on the dollar value of the work you take on. Some trades also hold their own tradesman license.
Do I need workers comp as a contractor with no employees?
Not by the Act itself until you regularly have more than two counted workers. But a subcontractor's workers count toward that number, and general contractors and clients often require proof of coverage before you can start.
How do the contractor license classes work in Virginia?
They are tiered by the dollar value of work: Class C for the smallest projects, Class B in the middle, and Class A for the largest. The exact dollar thresholds are set by regulation, so confirm current figures with the Board.
Can I get a local business license without workers comp?
Generally not, if you are a contractor who needs coverage. Virginia bars a county, city, or town from issuing or renewing your business license unless you certify workers comp compliance on the Commission's Form 61A.
Can I be liable for a subcontractor's injured workers?
Yes. As a statutory employer, a general contractor or owner who subcontracts work that is part of its business can owe comp to an uninsured sub's injured workers. Collecting a certificate from every sub protects you.
What is Form 61A and do I need it?
It is the Commission's contractor certificate of workers' compensation insurance, which you file with the local Commissioner of the Revenue to certify coverage for your business license. Signing a knowingly false one is a crime.
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)?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Do I need workers comp for 1099 contractors?
- What workers comp does not cover
- Virginia electrician 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.