As a Virginia sole proprietor, you are not counted as your own employee, so nothing forces you to insure yourself, and you are not required to carry workers compensation until you regularly have more than two counted workers, meaning three or more. That is a real difference from a one-employee state: hiring one or two people alone does not trigger the mandate, though you can choose to buy anyway. You can also elect to cover your own on-the-job injuries by telling the carrier to include you. The number that matters is how many workers count, and a subcontractor's employees count too.
Who this is for: Virginia sole proprietors, from a solo cleaner or handyman with no staff to a sole proprietor who takes on a small crew or uses subcontractors.
The short version
- A sole proprietor is not counted as an employee, so a solo owner is not required to carry comp.
- Coverage becomes required once you regularly have more than two counted workers, meaning three or more.
- You may elect to cover your own injuries by having the carrier include you, even while you are under the threshold.
- A subcontractor's employees count toward your number, so using subs can push you over the line.
- A sole proprietor has no corporate shield, so an uninsured injury can reach your personal assets.
Covering yourself is a choice
A sole proprietor sits outside the workers comp system by default. You are not counted as your own employee, so nothing forces you to insure your own injuries, and you do not count toward the more-than-two threshold. If you want that protection, you elect in by asking the carrier to include you on a policy. Many solo owners weigh this against their health insurance, but keep in mind that comp also replaces lost wages and covers work injuries that a health plan may exclude, which is a gap health coverage alone does not fill. A client or general contractor that requires proof of coverage is a common reason a solo owner buys a policy and elects to be included.
When it is just you vs when you hire
| Your situation | Is comp required? | What to weigh |
|---|---|---|
| Solo, no employees, no client requirement | No | Optional; it would insure your own injuries if you elect in |
| You hire one or two workers | Not yet | Still under the more-than-two line, though you may buy anyway |
| You regularly have three or more counted workers | Yes | Coverage is required for the crew |
| You subcontract to another business | Depends | A sub's employees count toward your three, and an uninsured sub's injured workers can become yours |
What changes as you grow
Crossing three counted workers flips the switch: Virginia now requires a policy, with no grace period once you are over the line. Growth also raises your exposure sharply. If a worker is hurt and you carry no required coverage, the Commission can fine you up to 250 dollars a day, up to a 50,000 dollar cap plus costs, and the worker can choose to sue you with your usual legal defenses removed. A sole proprietor has no corporate shield, so a judgment can reach your personal savings, home, and other assets. And because a subcontractor's employees count toward your three, a solo owner who leans on subs can be over the line sooner than expected, which is why many buy a policy and elect themselves in as they grow.
A Charlottesville example
Illustrative, not a quote. A Charlottesville house cleaner works alone and skips workers comp, which is fine because Virginia does not require it for a solo owner. She wins a recurring contract with a property manager who requires proof of coverage, so she buys a policy and elects to include herself, since she does the physical work and wants her own injuries covered. As the work grows she brings on two part-time cleaners and a subcontractor with one helper, which puts her counted workers over three, so coverage is now required, not just contractual. We keep her on the policy, add the crew, and rate the cleaning work correctly so she is not overpaying. See our workers comp for cleaners page.
Real questions Virginia owners ask
Do I need workers comp as a Virginia sole proprietor?
Not as a solo owner. You are not counted as your own employee, so nothing forces you to insure yourself. Coverage becomes required once you regularly have more than two counted workers, meaning three or more.
Am I covered by workers comp if I do not have employees?
Not automatically. A sole proprietor is outside the system by default. You can elect to include yourself by asking the carrier to add you to a policy if you want your own on-the-job injuries covered.
Does hiring one or two workers make comp required?
Not on its own. Virginia sets the line at more than two counted workers, so one or two alone stays under it. You may still choose to buy, and once you reach three or more, coverage is required.
Do my subcontractors affect whether I need coverage?
Yes. A subcontractor's employees count toward your more-than-two number, even when the sub carries its own coverage. Using subs can push a small solo operation over the line and into a mandatory policy.
Can an injured worker reach my personal assets?
As a sole proprietor you have no corporate shield, so a judgment can reach your personal assets. Carrying comp when required makes it the worker's main remedy and generally blocks that lawsuit.
Should I include or exclude myself as the owner?
It depends on whether you want your own on-the-job injuries paid by comp. Including yourself covers you but adds your pay to the premium. Leaving yourself off lowers the premium but relies on other coverage.
Does my health insurance replace workers comp?
Not fully. Health insurance may pay some medical bills, but it does not replace lost wages the way comp does, and many health plans exclude work-related injuries. Comp is built for on-the-job harm.
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 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)
- Do sole proprietors need workers comp?
- Hiring your first employee: what changes
- Virginia cleaning 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.