Workers' Compensation by state

Workers' compensation requirements in Vermont

Required

Direct answer

Does Vermont require workers' compensation insurance?

Yes. Vermont requires workers' compensation coverage once a business has one or more employees, under the Vermont Workers' Compensation Act. Vermont requires employers with one or more employees to carry workers' compensation coverage. Coverage is provided through private insurers or an approved self-insurance program.

Reviewed by Cornerstone Staff28 years of financial services state licensing experienceLast verified July 29, 2026

How the mandate works

Vermont requires employers with one or more employees to carry workers' compensation coverage. Coverage is provided through private insurers or an approved self-insurance program.

Coverage trigger: One or more employees
If you go without coverage: Failing to carry required coverage can bring daily civil penalties, stop-work orders, and personal liability for an injured worker's benefits.

Notable exemptions

Exemptions are narrow and fact-specific; confirm your situation with the regulator or an agent before relying on one.

Sole proprietors and partners, who may elect coverage
Certain agricultural and farm labor below statutory payroll thresholds
Some casual employment not in the usual course of the business

Statutes and sources

Vermont Workers' Compensation Act

Vt. Stat. Ann. tit. 21, sect. 601 et seq.

Regulator: Vermont Department of Labor, Workers' Compensation Division . Last verified 2026-07-29 from the official source .

Related Vermont compliance pages

Insurance

Vermont cyber liability

Licensing and bonds

Vermont licensing, bond, and regulator directory

Get Vermont coverage handled

Share a few details and an agent will respond within one business day.

Request a quote Talk to an agent