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Resources

Virginia Law Requires Certain Employers to Have Workers Compensation Insurance

Virginia law requires that every employer who regularly employs 3 or more employees must have Workers Compensation Insurance. Failure to do so subjects the employer to fines up to $5,000.00, plus liability to any injured worker.

But what if you’re a business owner that hires only independent contractors and does not regularly employ 3 of more employees?

In most cases, the cost effective business decision is to obtain workers’ compensation coverage anyway. For most businesses the cost will be relatively small compared to the potential liability to an injured worker: lifetime medical benefits and 500 weeks of wage loss protection. Worker’s compensation insurance will also cover the legal fees and costs of defending a claim. And a claim can come from unexpected directions, like an employee of an independent contractor your business has engaged. Also, sometimes people whom the business believes to be independent contractors may in fact be considered to be employees, entitled to coverage.

Our firm has the expertise to provide advice and counsel in determining the optimal form of business organization, drafting the documents that will define the contractual and employment relationship, and in assisting with making important business decisions like whether or not obtain workers’ compensation coverage.

For more information, or copies of the statute, please contact Ben Trichilo at (703) 934-1198.

Disclaimer: This firm only offers legal advice to clients, and the facts of a particular situation usually drive the legal advice we give to clients. This message is not intended to be legal advice appropriate for all situations.