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Workers’ Compensation Insurance in Vermont

Vermont generally requires employers to secure workers’ compensation, but farm employment is excluded when the employer’s annual aggregate payroll is below $10,000 unless the employer elects coverage. Sole proprietors and partners can also qualify for a narrow exclusion, while corporate officers and LLC managers or members may be excluded only with commissioner approval. 1

What Is Workers’ Compensation?

Workers’ compensation can pay medical care and part of an employee’s lost wages after a work-related injury or illness. If you have staff, check who is covered in each state; owners, contractors and some workers may be treated differently. Read the national Workers’ compensation guide.

Vermont Requirements

RequirementDetails
Employer dutyEmployers must secure compensation through authorized insurance, guarantee insurance, approved financial responsibility, or an approved nonprofit self-insurance corporation, subject to statutory worker exclusions. 2

What to Watch for in Vermont

  • Farm Payroll Exclusion

    Agricultural or farm employment is excluded when the employer’s aggregate payroll is under $10,000 in a calendar year, unless the employer notifies the Commissioner of Labor that it elects coverage; an insurance contract counts as that notice. If your farm payroll is near the threshold, ask the agent how payroll is counted and whether your policy reflects an election. 1

  • Written Contractor Waiver

    A sole proprietor or partner owner is excluded only if the worker satisfies the statutory independence criteria and signs a written contract stating, among other things, that the person has no employees and elects not to buy coverage. If you hire a one-person contractor, check the actual work relationship and the written terms; the contract does not protect you from claims by that person’s employees. 1

  • Approved Owner Exclusions

    A corporation or LLC may obtain approval to exclude up to four executive officers, managers or members. If all are approved for exclusion and the business has no other employees, it need not buy workers’ compensation coverage; otherwise, the excluded owners do not remove coverage duties for other employees. Ask the agent which owners the policy includes and verify that the Commissioner approved each exclusion. 1

  • Approval Before Self-Insuring

    Vermont permits an employer to demonstrate financial responsibility to the Commissioner, with terms such as a bond, cash deposit, reserves or excess-risk insurance, and also allows participation in an approved nonprofit self-insurance corporation. A company cannot treat a reserve account as approved self-insurance; ask what authorization and security the Commissioner requires. 2

  • Check the Policy Record

    Employers subject to the chapter must file a certificate with the Commissioner listing the policy number, effective and expiration dates, and covered operations. Before a Vermont subcontractor starts work, compare its current certificate with the Department of Labor’s coverage verification record and ask the broker to resolve any date or operation mismatch. 3,4

Who Regulates Insurance in Vermont

Vermont Department of Financial Regulation

The Vermont Department of Financial Regulation administers Vermont insurance laws, oversees insurers and insurance producers within its authority, and provides regulatory and consumer resources. You can use the department's complaint process to raise an insurance issue and its licensing resources to check insurance professionals. 5,6,7

Surplus-lines tax and stamping office

Reported tax rate: 3% of premium The NAIC's state chart lists a 3% of premium charge for surplus-lines coverage for Vermont (the chart's state entries were reviewed in October 2025). Your broker may collect the applicable amount with the premium. Surplus-lines insurers are not licensed in the state and generally are outside state guaranty-association protection; ask your broker to explain the insurer's financial protections and any diligent-search requirement that applies to your placement. 8,9

Providers With Documented State Licenses

These providers publish a national listing for Workers’ compensation; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Vermont. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • CorgiCorgi Insurance Services, Inc.Insurance producer · checked 2026-09-28Corgi’s company producer-license table lists 50 jurisdictions: 49 states and the District of Columbia, including DC license 3003091619. New Mexico does not appear in the table and is not included here; the omission does not establish that Corgi is unlicensed there. The company-reported table has no stated as-of date and does not establish product availability. 12
  • ERGO NEXT InsuranceNext First Insurance Agency, Inc.Insurance producer · checked 2026-09-28ERGO NEXT’s current license table lists Next First Insurance Agency, Inc. in 50 jurisdictions, including Washington, DC; New York is excluded because its table rows name Next Insurance Services and AP Intego, not Next First. The table is company-reported; it does not establish product availability or provide state-regulator verification for each entry. 14
  • HiscoxHiscox Insurance Company Inc.Insurer · checked 2026-09-28Hiscox’s U.S. company information states that Hiscox Insurance Company Inc. is licensed in all 50 states and the District of Columbia. This is company-reported insurer authority for this entity and does not establish which company issues every Hiscox-branded product. 13
  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 15
  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 16

Questions to Ask Before You Buy in Vermont

  1. Does my farm payroll qualify for Vermont’s under-$10,000 exclusion, and should I elect coverage for this policy year?
  2. Which officers, LLC managers or members are included in the policy, and do any exclusions have written Commissioner approval?
  3. If I use a sole-proprietor contractor, how will you assess the written waiver and the risk that the person has employees?
  4. What approval and financial security would Vermont require before my company could self-insure?

Workers’ Compensation in Vermont: FAQ

Do Vermont farms need workers’ compensation insurance? 1

Usually, if the farm employer’s aggregate payroll is $10,000 or more in a calendar year. Farm employment below that threshold is excluded unless the employer elects coverage, and an insurance contract counts as notice of that election. 1

Are Vermont business owners covered by workers’ compensation? 1

Not always. Qualifying sole proprietors and partners may be excluded under a written waiver, and a corporation or LLC may exclude up to four officers, managers or members only with Commissioner approval. 1

Workers’ Compensation in Other States

Other Coverage in Vermont

Sources

  1. 21 V.S.A. Chapter 9, Employer’s Liability and Workers’ Compensation. Vermont General Assembly; § 601(14)(C), (F), (H) (worker exclusions); § 687(a) (security for compensation). Accessed 2026-09-28.
  2. 21 V.S.A. § 687, Security for Compensation. Vermont General Assembly; § 687(a)(1)–(4) (authorized insurance, guarantee insurance, approved financial responsibility and nonprofit self-insurance corporation). Accessed 2026-09-28.
  3. 21 V.S.A. § 690, Certificate, Form; Copy of Policy. Vermont General Assembly; § 690(a) (certificate fields and filing with Commissioner). Accessed 2026-09-28.
  4. Does My Employer Have Workers’ Comp Coverage? Vermont Department of Labor; Employer’s Workers’ Compensation Insurance Coverage Verification tool. Accessed 2026-09-28.
  5. Vermont Department of Financial Regulation. Vermont Department of Financial Regulation; Official regulator website; insurance oversight and consumer/professional resources. Accessed 2026-09-28.
  6. Insurance Department Directory. National Association of Insurance Commissioners; Vermont Department of Financial Regulation entry; official contact and website listing. Accessed 2026-09-28.
  7. Surplus Lines Insurance Premium Taxes. National Association of Insurance Commissioners; VT row; state surplus-lines premium-tax rate reviewed October 2025. Accessed 2026-09-28.
  8. Guaranty Associations & Funds. National Association of Insurance Commissioners; Coverage of claims from insolvencies of insurers licensed in a state; surplus-lines insurers are nonadmitted. Accessed 2026-09-28.
  9. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  10. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  11. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  12. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  13. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  14. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  15. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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