Vermont Workers' Compensation Insurance

Your Guide to Workers' Comp Insurance in Vermont

Find the right workers' comp insurance policy for your business.

Vermont Workers Compensation Insurance

Vermont businesses have paid out $281.79 million in workers' comp claims over the past few years. Since work-related injuries happen all the time, it's crucial to have the right coverage to protect your business. Even simple slips and falls can result in a lawsuit without the right insurance. For help navigating workers comp coverage, find a local independent agent today.

Workers' Compensation Coverages/Non-Coverages in Vermont

When workers get injured on the job, they need help paying for their expenses. Workers’ comp protects employees from the costs of workplace injuries and illnesses. But coverage also protects businesses from employee lawsuits and other unpredictable costs after such an incident.

Here's a closer look at what workers' compensation covers and does not cover in the state of Vermont.

Workers' comp covers the following:

  • Occupational diseases
  • Traumatic injuries
  • Certain mental injuries
  • Repetitive-type injuries

Check out a real-life example of coverage:

A hospital employee in Vermont gets a deep cut from opening a package of medication. The worker needs stitches to heal their injury. Workers' comp would cover these medical costs and other associated expenses.

Workers' comp doesn't cover:

  • Intentional employee injuries to themselves at the workplace
  • Accidents that occur while an employee is intoxicated
  • Employee illnesses or injuries sustained outside of work
Workers' Compensation Coverage Covered Not Covered
Traumatic injuries
Repetitive-type injuries
Certain mental injuries
Occupational diseases
Employee illnesses or injuries sustained outside of work
Accidents that occur while an employee is intoxicated
Intentional employee injuries to themselves at the workplace

An independent insurance agent can further break down what workers' compensation covers and doesn't cover in Vermont.

Why Do You Need Workers Compensation Insurance in Vermont?

Businesses in Vermont need workers' comp coverage because it's required by law, if you have any employees. But having coverage is also critical to protect your company against lawsuits and large financial losses.

Workers' comp must be obtained immediately upon hiring an employee. It's critical to have coverage in place before any injuries or illnesses can occur on the job site. Your business can be held financially responsible for the incident, otherwise.

What Consequences Could You Face if You Don’t Have Workers’ Compensation in Vermont?

Businesses in Vermont that don't carry workers' comp could end up facing legal consequences like fines or jail time. Some businesses mistakenly think of workers' comp as optional due to the "safe" nature of their operations,  but coverage provides crucial financial protection in case of an incident.

Vermont requires all employers with one or more employees, whether full-time or part-time, to carry workers' comp. Businesses that lack the required coverage can be subject to fines of $100 per day for the first week without coverage, and $150 for each additional day. The state may also shut down your business.

What Are Vermont's Workers’ Compensation Laws?

Vermont's workers’ compensation laws require that all employers with one or more employees carry workers' comp coverage, regardless of the size of the business. Failure to carry Vermont workers’ compensation insurance that meets the state’s requirements can put your business at risk for expensive lawsuits if a worker gets injured or ill. 

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How Much Does Vermont Workmans' Comp Cost?

Vermont workmans' comp premiums are calculated using a state-wide standard. Your costs will be determined by your company’s annual payroll amount, the type of business you operate, and your company’s history of work-related accidents and illnesses.

The National Council for Compensation Insurance (NCCI) assigns classification codes for each occupation. Each class code is assigned a base rate for workers’ compensation. To calculate the total premium, an employer’s annual payroll at the beginning of the policy period is divided by 100, and then multiplied by the base rate.

Consider the following example:

  • Premium: $100,000 
  • Mod: 0.85 (15% premium credit)
  • Premium with mod credit applied: $85,000
  • Premium: $100,000
  • Mod: 1.0 
  • Premium is not adjusted: $100,000
  • Premium: $100,000 
  • Mod: 1.15 (15% premium surcharge/debit)
  • Premium with mod debit applied: $115,000

Many businesses in Vermont have employees that fall under multiple classifications. These classifications and associated premiums get combined to determine the annual workers’ comp premium. 

Vermont Workers’ Compensation Base Rate Examples

Workers’ compensation rates in Vermont vary by insurance company. The NCCI sets a base rate for each class code in Vermont, but rates vary by each insurance company's underwriting standards. 

Workers' Comp Cost Per Employee in Vermont

Higher company payrolls and larger businesses are major factors that lead to higher workers' comp costs. Here's an illustration of how workers' comp costs vary by payroll range in each specific industry below.

Annual Workers' Comp Cost Per Employee

Industry Lower Cost Medium Cost Upper Cost
Construction $1,777 $3,405 $13,030
Finance and Insurance $585 $1,056 $3,867
Hotels / Motels $429 $964 $4,073
Manufacturing and Food Production $760 $1,444 $5,488
Professional and Technical Services $549 $1,087 $4,253
Real Estate $99 $197 $771
Restaurants and Taverns $174 $389 $1,635
Retail Trade $335 $643 $2,461
Transportation and Warehousing $1,309 $2,578 $10,049

A greater track-record of safety and fewer accidents lead to cheaper workers' comp insurance rates for businesses. Keep in mind that insurance companies  reset your rates after an accident, which often leads to a noticeable spike in your premiums.

Best Workers' Comp Companies in Vermont

Workers' comp is available from many different insurance companies in Vermont. Here are just a few of our top picks for quality workers' comp insurance carriers.

Top Workers' Compensation Insurance Companies Star Rating
Nationwide
5 star rating
Liberty Mutual
4.5/5 star rating
Builders & Tradesmen's Insurance
4.5/5 star rating
Travelers
5 star rating
Main Street America

An independent insurance agent can help you look into these workers' comp insurance companies and get matched to the carrier who best meets your needs at the most affordable rate.

Top 6 Most Common Workers' Comp Claims/Injuries

Top 6 Most Common Workers Comp Claims
  1. Lacerations: Deep cuts can happen at any business, but are especially common in the restaurant and manufacturing fields. 
  2. Sprains/strains: Another type of injury that can happen at any business, but is especially common in certain settings, such as where lots of twisting and turning is required.
  3. Contusions: Bruises and other marks on the skin caused by impact often happen from dropped objects, improper lifting, or colliding with an object.
  4. Burns: Burns often happen in restaurants, construction businesses, bakeries, and other businesses that have a heat source.
  5. Eye injuries: Eye injuries are most frequent in industries that require the use of harsh chemicals, including manufacturing, painting, and construction.
  6. Fractures: Fractures can happen in any business, but are especially common in industries that require a lot of movement and the use of heavy machinery.

Why Are Independent Insurance Agents Awesome?

It’s simple. Independent insurance agents simplify the process by shopping and comparing insurance quotes for you. Not only that, but they’ll also cut the jargon and clarify the fine print, so you know exactly what you’re getting.

There’s no business too small for our independent insurance agents. They have access to multiple insurance companies, ultimately finding you the best workers' comp coverage and competitive pricing while working for you.

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TrustedChoice.com Article | Reviewed by Paul Martin

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https://labor.vermont.gov/sites/labor/files/doc_library/Fact%20Sheet%20For%20Employers.pdf

https://www.employers.com/blog/2019/7-common-workers-compensation-claim-injuries/