In Virginia, failing to carry required workers compensation is illegal and expensive. If you regularly have more than two counted workers and no coverage, the Workers' Compensation Commission can fine you by the day up to a large cap, order you to stop all business, and, for a knowing and intentional violation, treat it as a crime. On top of that, an uninsured employer loses the protection that normally keeps comp a worker's only remedy, so an injured worker can choose to sue you instead. This is not a paperwork slip; it is treated as a serious violation of the Act.
Who this is for: Virginia employers weighing the risk of going without coverage, and owners who have let a policy lapse and want to understand their real exposure.
The short version
- Being uninsured when required exposes you to a fine of up to 250 dollars for each day of noncompliance.
- The daily fines are capped at 50,000 dollars, plus costs, and are assessed by the Commission.
- After a 15-day written notice, the Commission can order you to stop all business until you comply.
- A knowing and intentional failure to carry coverage is a criminal misdemeanor.
- An injured worker can choose a comp claim or a lawsuit, and you lose your usual legal defenses.
The fines that stack by the day
Virginia does not treat going uninsured as a flat ticket. Under section 65.2-805, the Commission can assess a civil penalty of up to 250 dollars for each day you go without required coverage, subject to a maximum of 50,000 dollars plus costs. For a business that is over the line for weeks or months, the per-day piece adds up fast. A separate penalty also applies to certain related violations of the Act. The penalty is assessed in an open hearing, with review and appeal rights, so it is a formal proceeding, not an automatic bill.
| Consequence | What it is | Rough exposure |
|---|---|---|
| Daily civil penalty | A fine for each day you were uninsured | Up to 250 dollars per day |
| Maximum penalty | The cap on the stacked daily fines | Up to 50,000 dollars plus costs |
| Cease-and-desist order | An order to stop all business after a 15-day notice | Business shut down until you comply |
| Criminal charge | Knowing and intentional failure to insure | A Class 2 misdemeanor |
| Loss of exclusive remedy | The worker can sue instead of filing a comp claim | A lawsuit with your usual defenses removed |
The shutdown order and the criminal exposure
Beyond the fines, Virginia can stop your business. After the Commission finds you noncompliant and sends a 15-day written notice by certified mail, if the failure continues it can order you to cease and desist all business transactions and operations until you are found to be in compliance. Worse, an employer who knowingly and intentionally fails to carry required coverage is guilty of a Class 2 misdemeanor. This is not just a company-level fine; the order can halt the entire operation, and the criminal charge can reach the people who made the call.
The lawsuit you can no longer defend
Carrying a policy is what makes comp the injured worker's main remedy and keeps a lawsuit off the table. Go uninsured, and the worker gets to choose: file a comp claim, or sue you at law for damages. In that lawsuit you lose the usual defenses that the worker was careless, knew the risk, or was hurt by a co-worker, because Virginia strips those protections from a non-complying employer. A single serious injury suit, with those defenses gone, can cost far more than years of premium, on top of the fines and the risk of being shut down.
A Lynchburg example
Illustrative, not a quote. A Lynchburg roofing company lets its workers comp lapse to save money over a slow winter, while it still has a full crew. A roofer falls and is seriously hurt while the policy is down. The company faces the daily penalty up to the cap plus costs, a 15-day notice followed by an order to halt its crews, and a claim it cannot fully defend, because the injured roofer elects to sue at law with the company's usual defenses removed, while the owner who chose to skip coverage faces a possible misdemeanor charge. The combined cost dwarfs the premium it skipped. After the claim, the owner reinstates coverage, and we place a policy and rate the roofing payroll correctly. See our workers comp for roofers page.
Real questions Virginia owners ask
Is it illegal to not have workers comp in Virginia?
Yes, if you regularly have more than two counted workers. Failing to carry required coverage violates the Act. The Commission can fine you by the day, order you to stop all business, and a knowing failure is a crime.
What is the penalty for not having workers comp in Virginia?
Up to 250 dollars for each day you go without, capped at 50,000 dollars plus costs, assessed by the Commission. The state can also order you to stop operating and pursue a criminal charge for a knowing violation.
Can Virginia shut my business down for going uninsured?
Yes. After finding you noncompliant and sending a 15-day written notice by certified mail, the Commission can order you to cease and desist all business until you are found to be in compliance.
Could I face criminal charges for skipping coverage?
Yes. An employer who knowingly and intentionally fails to carry required coverage is guilty of a Class 2 misdemeanor in Virginia. This goes beyond a civil fine to a criminal charge.
Can an injured worker sue me if I have no coverage?
Yes. Going uninsured, you lose the protection that makes comp the only remedy, so the worker can choose to sue you at law instead of filing a claim, and you lose your usual defenses in that suit.
What defenses do I lose by going uninsured?
The usual ones an employer relies on: that the worker was careless, knew the risk, or was hurt by a co-worker. Virginia strips those defenses from a non-complying employer, which makes the lawsuit much harder to fight.
Is going without coverage cheaper than carrying it?
Only until something goes wrong. Skipping premium saves money short term, but the daily fines, a shutdown order, a misdemeanor charge, and a single injury lawsuit can cost far more than years of coverage.
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?
- 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)
- Workers comp vs employers liability
- What workers comp does not cover
- Virginia roofer 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.