Getting workers comp in Vermont is straightforward, because Vermont has an open, competitive market where many private carriers compete for your business. There is no state fund and no monopoly to buy from. If private carriers will not take you, the Vermont Workers' Compensation Insurance Plan, an assigned risk pool run by the rating bureau NCCI, is the guaranteed backstop, so coverage exists even for hard-to-place businesses. The main steps are gathering your details, getting your work classified correctly, and comparing quotes.
Who this is for: Vermont employers ready to buy workers comp, including newer businesses and those in higher-risk trades who worry about being turned down.
The short version
- Vermont has a competitive private market, so you shop many carriers rather than buy from the state.
- You can get covered three ways: buy from a regular insurer (what almost every business does), self-insure if the state approves you, or join a nonprofit self-insurance group.
- Even if every insurance company turns you down, eligible employers can virtually always get a policy through the assigned risk plan, the guaranteed pool of last resort.
- You will need your payroll by type of work, your headcount, your history, and any past claims.
- An agent can place coverage across carriers and turn around proof of coverage quickly for a client or contract.
What you need to get quoted
| Item | Why it is needed |
|---|---|
| Estimated annual payroll | Premium is based on wages, counted in 100-dollar units |
| Type of work by role | Sets the pricing category for each employee |
| Number of employees and locations | Helps the carrier understand your operation |
| Years in business and prior coverage | Affects appetite and pricing |
| Past claims, if any | Feeds the score that adjusts your rate |
The steps to coverage
First, pull together your payroll broken out by the kind of work each person does, your headcount, how long you have been in business, and any prior claims. Second, get your work classified correctly, since the pricing category drives the cost and a wrong one can overcharge you for years. Third, compare quotes across carriers, because Vermont insurers file their own multipliers and prices vary. Vermont law lets you secure coverage three ways: buy from a carrier authorized to write comp in the state, qualify as an approved self-insurer, or join an approved nonprofit self-insurance group. If private carriers decline you, coverage still exists through the assigned risk plan, so a tough class of work does not leave you without options. Once you bind, you can get proof of coverage issued to satisfy a client or general contractor.
If you have been turned down
Being declined by one carrier does not mean you cannot get covered in Vermont. Some carriers avoid certain trades or newer businesses, but another may want exactly your kind of work, which is why shopping the market matters. When no private carrier will write the risk, the Vermont Workers' Compensation Insurance Plan serves as the guaranteed path to coverage, so eligible Vermont employers in good faith can virtually always get insured. An agent who works many carriers can match you to the ones most likely to say yes and price you fairly.
A Middlebury example
Illustrative, not a quote. A new Middlebury specialty manufacturer needs proof of coverage to sign a supply contract, but the first carrier it tries declines because the business is brand new. We take the same information to carriers that write newer manufacturing accounts, get it classified on the right kind of work rather than a higher-risk category, and secure a quote. Because the assigned risk plan stands behind the market as the guaranteed backstop, an eligible employer can virtually always obtain a policy. Once bound, the company gets its certificate the same business day and signs the contract. See our workers comp for manufacturers page.
Real questions Vermont owners ask
How do I buy workers comp in Vermont?
You shop the competitive private market, since Vermont has no state fund or monopoly. Gather your payroll by type of work, your headcount and history, get classified correctly, and compare quotes before you bind.
Do I buy Vermont workers comp from the state?
No. Vermont has no state fund. You buy from private carriers on the open market, and if no carrier will take you, the Vermont Workers' Compensation Insurance Plan run by NCCI is the guaranteed backstop.
What are my options for securing coverage?
Three under Vermont law: buy from a carrier authorized to write comp in Vermont, qualify as an approved individual self-insurer, or join an approved nonprofit self-insurance group. The assigned risk plan run by NCCI is not a separate method; it is the guaranteed fallback within the carrier route for businesses no carrier will voluntarily take. Most small employers buy from a carrier.
What information do I need to get a quote?
You need your estimated annual payroll, the type of work each employee does, your number of employees and locations, your years in business and prior coverage, and any past claims history.
What if carriers turn me down?
You still have a path. Some carriers avoid certain trades or new businesses, but another may want your work, and the Vermont Workers' Compensation Insurance Plan is the guaranteed backstop for hard-to-place accounts.
What is that guaranteed backstop you keep mentioning?
It is a coverage-of-last-resort pool for employers no carrier will take, the Vermont Workers' Compensation Insurance Plan. It is run by the rating bureau NCCI and guarantees that eligible employers can get a policy even when carriers decline them.
How fast can I get proof of coverage?
Once you bind a policy, proof of coverage can usually be issued quickly, often the same business day, so you can satisfy a client or general contractor that requires a certificate before work starts.
Why Vermont owners choose Morrow
- We shop the right market for you. In Vermont 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 Vermont Workers' Compensation Insurance Plan (the assigned risk pool) 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 Vermont guides
Every Vermont 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 Vermont (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?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What is a ghost workers comp policy?
- Glossary: workers comp class code
- Vermont manufacturer workers comp
This guide is general information, not legal advice. Vermont rules and penalty amounts can change, so verify current requirements with Vermont Department of Labor, Workers' Compensation and Safety Division or a licensed advisor before you rely on them. Last updated: July 2026.