Remote Staff in Vermont: Do I Need Comp?

If you employ remote or out-of-state workers, whether you need Vermont workers compensation depends on where each person actually works and where they were hired. A worker who works in Vermont generally needs Vermont coverage, even if your company is based elsewhere. A Vermont worker injured while working in another state can still be covered under Vermont law when the job is connected to the state. A worker based in another state usually falls under that state's rules, and most states require coverage too, so the safe move is to check state by state.

Who this is for: Vermont employers with remote workers, staff who travel for work, or employees based in other states, common for tech, consulting, and professional firms.

The short version

A worker who works in Vermont generally needs Vermont coverage, whatever state your company is in.
A Vermont-hired employee injured out of state can be covered here when the job is connected to Vermont.
A worker based in another state usually falls under that state's comp law, and most states require coverage.
Vermont hiring contracts are generally treated as making comp the exclusive remedy for an out-of-state injury.
The safest step is to confirm coverage in every state where a worker actually sits before assuming one policy covers all.

Which state's rules reach a remote worker

Vermont reaches an employee who works in the state, so a Vermont-based remote worker generally needs Vermont coverage. Under 21 V.S.A. 619, Vermont also extends coverage to a Vermont worker injured in another state when the work is connected to Vermont, and under 21 V.S.A. 623 a Vermont hiring contract is generally treated as making comp the exclusive remedy for that out-of-state injury. Vermont likewise honors coverage for an out-of-state-hired worker injured here under 21 V.S.A. 620 when their home-state rights can be reasonably handled in Vermont. At the same time, Vermont cannot switch off another state's mandate: a worker who lives and works in a state that requires comp is generally governed by that state's law, and you may need coverage there.

Out-of-state employers and Vermont work

If your business is based outside Vermont but has an employee working here, Vermont generally requires coverage for that Vermont work, usually by listing Vermont on your existing policy. Insurers do this by naming Vermont in the part of the policy that lists the states where you have exposure, and by using a carrier authorized to write comp in Vermont. Without Vermont listed, a claim from your Vermont worker may not be covered, so an employer based elsewhere still needs to make sure the state is on the policy before work starts here.

Common remote setups

Setup	What usually governs	What to check
Vermont worker, works in Vermont	Vermont law	You need Vermont coverage
Worker based in another state	That state's comp law	That state likely requires its own coverage
Vermont-hired worker injured out of state	Often Vermont	Job connected to Vermont under 21 V.S.A. 619
Out-of-state employer, staff work in Vermont	Vermont coverage usually required	Make sure Vermont is listed on the policy

An Essex example

Illustrative, not a quote. An Essex software company keeps most of its team in Vermont and hires two fully remote employees in other states. The Vermont staff clearly need Vermont coverage, which the company carries. For the two out-of-state hires, it checks each state's rules, because those states likely require their own coverage. When a Vermont-based salesperson is hurt on a short trip out of state, her Vermont job keeps her Vermont rights under 21 V.S.A. 619. We help the company line up coverage that matches where its people actually work. See our workers comp for tech companies page.

Real questions Vermont owners ask

Do I need workers comp for remote workers in Vermont?

For staff who work in Vermont, yes, you generally need Vermont coverage, whatever state your company is in. A worker based in another state usually falls under that state's rules, which often require coverage too.

Does Vermont coverage follow a worker who travels out of state?

It can. Under 21 V.S.A. 619, a Vermont worker injured out of state may keep Vermont coverage when the job is connected to Vermont, and a Vermont hiring contract is generally treated as making comp the exclusive remedy.

I hired a remote employee in another state. Whose rules apply?

Usually that state's. Vermont cannot switch off another state's mandate, so a worker who lives and works in a state that requires comp is generally governed there. You likely need coverage in that state.

I am based out of state but have a worker in Vermont. Do I need coverage here?

Generally yes. Vermont usually requires coverage for an employee working here, most often by adding Vermont to your existing policy with a carrier authorized in Vermont, so a claim from that worker is actually covered.

Can my worker collect in two states for the same injury?

Generally no. Vermont coordinates with other states, so a worker who recovers under another state's law for the same injury generally cannot also collect a second time under Vermont law for the same harm.

Does one policy cover employees in several states?

Sometimes, if the states are listed on the policy. Many businesses add each state where workers sit to their coverage. The key is to confirm every work state is actually named, not assumed.

What should I check before hiring remotely from Vermont?

Check the comp rules of each state where a worker will actually sit, and make sure Vermont is listed for anyone working here. Assuming one state's policy covers a distributed team is the common mistake.

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.

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.