Do I Need Workers Comp in Virginia?

If you regularly have more than two employees in Virginia, meaning three or more, yes, you need workers compensation insurance. Virginia's Workers' Compensation Act requires it once you regularly employ more than two people, and the count is broad: part-time, seasonal, family, minors, corporate officers, LLC managers, and even a subcontractor's employees all count toward the three. The real questions are who counts, how owners are treated, and how to buy it, not whether the rule reaches an ordinary employer.

Who this is for: Any Virginia employer, from a growing business making its third hire to an established company double-checking the rules for its mix of staff.

The short version

Coverage is required once you regularly have more than two employees, meaning three or more.
The count is broad: part-time, seasonal, family, minors, officers, managers, and a subcontractor's workers all count.
Owners split two ways: sole proprietors, partners, and single owners are not counted and opt in; corporate officers and LLC managers are counted and can opt out.
A few workers are carved out, including domestic servants, casual labor, and some farm labor.
Virginia has no state fund, so you buy from a private carrier, with an assigned risk plan as the backstop.

Who counts toward the more-than-two rule

Virginia counts almost everyone who works for you, which is why small businesses cross the line faster than owners expect. The Commission counts part-time, seasonal, family, and minor workers, corporate officers and LLC managers even when they do no regular work, and, importantly, a subcontractor's employees, even when that sub carries its own coverage.

Worker type	Counts toward the three?	Notes
Full-time W-2 employee	Yes	Counts from the day you have them
Part-time or seasonal worker	Yes	No hours exception; they still count
Family member who works for pay	Yes	Counts the same as any other employee
Corporate officer or LLC manager	Yes	Counts even if they do no regular work
A subcontractor's employees	Yes	Counted even when the sub has its own coverage
Sole proprietor, partner, or single owner	No, unless they opt in	Not automatically an employee

How Virginia treats business owners

Owners are the one place the answer changes with your structure, and Virginia uses two opposite defaults. A sole proprietor, a partner, the single member of a one-member LLC, and the sole shareholder of a one-shareholder corporation are not automatically employees and do not count toward the three; each may elect to be included by telling the carrier, so their own on-the-job injuries are covered. Corporate executive officers and LLC managers are the reverse: they are treated as employees and do count, even if they perform no regular work. An officer or manager who does not want to be covered can reject it by filing Commission Form 16A under section 65.2-300, once the business already has a valid policy. Keep these opposite defaults straight, because assuming an officer is not counted is a common way to end up wrongly uninsured.

Why the rule has teeth

Virginia backs the mandate hard. An employer that should carry coverage but does not can be fined up to 250 dollars for each day it goes without, up to a 50,000 dollar cap plus costs, and after a 15-day written notice the Commission can order the business to stop all operations until it complies. A knowing and intentional failure is a criminal misdemeanor. On top of that, an uninsured employer loses the usual protection that makes comp a worker's only remedy, so an injured worker can choose either a comp claim or a lawsuit against the business, with the employer's normal defenses stripped away.

A Roanoke example

Illustrative, not a quote. A Roanoke landscaping business runs with the owner, who is a sole proprietor, and three seasonal crew members. The owner assumes seasonal workers do not count until the crew is bigger. In Virginia they count from the start, and three of them puts the business over the more-than-two line, so a policy is required. The owner buys coverage before the spring rush, and when a crew member is injured by a mower, comp pays the medical bills and part of the lost wages. Because the business was insured, the injury is handled as a comp claim rather than a lawsuit, and we make sure the landscaping payroll is rated on the right kind of work. See our workers comp for landscapers page.

Real questions Virginia owners ask

Is workers comp legally required for my Virginia business?

If you regularly have more than two employees, meaning three or more, yes. Virginia's Workers' Compensation Act requires coverage at that point, and it counts part-time, seasonal, family, officers, managers, and a subcontractor's workers toward the three.

How many employees before I need workers comp in Virginia?

Three. The line is more than two employees regularly in service, so two or fewer counted workers is under it and three or more is over it. The catch is how many people actually count once you include everyone.

Do part-time or seasonal workers count in Virginia?

Yes. Part-time, seasonal, and temporary workers all count toward the more-than-two threshold. There is no hours exception, so you cannot stay under the rule just by keeping people part-time.

Do a subcontractor's workers count toward my number?

Yes. Virginia counts a subcontractor's employees along with your own when deciding whether you have more than two, and that is true even when the subcontractor carries its own coverage. This pushes many small contractors over the line.

Do I have to cover myself as the owner?

It depends. A sole proprietor, partner, or single owner is not counted and may opt in through the carrier. A corporate officer or LLC manager is counted by default and covered unless they file a rejection with the Commission.

What if my workers are independent contractors?

A label does not settle it. Virginia uses a right-of-control test, not the simpler ABC test, and looks behind any written agreement. A worker you direct like an employee is an employee, and a misclassified worker who gets hurt can leave you exposed.

What happens if I do not carry it?

Virginia 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 treat a knowing failure as a crime. An injured worker can also choose to sue you instead of filing a comp claim.

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.

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.