“Do I really need workers’ compensation?” It’s a question we hear week in and week out from business owners. Whether you’re a dentist in Newport News, a restaurant owner in Hampton, or a contractor off of Kiln Creek, the answer remains the same: Yes, almost always.
In the state of Virginia, the law requires most employers to carry workers’ compensation insurance. So when does this requirement kick in?
Virginia law stipulates that if any business employer regularly hires more than two part-time or full-time workers, they must have workers’ compensation coverage in place.
Now, here’s what some business owners might now know: If a business hires subcontractors to perform the same trade, business or occupation, or to fulfill a contract of the business, those subcontractors’ employees also count in determining the total number of employees. Therefore, for those employing more than two workers, obtaining coverage becomes mandatory.
You might be thinking, “What if an employer is caught without the necessary coverage?” Well, there are penalties:
- An employer failing to insure for workers’ compensation when required by law could face a civil penalty of up to $250 for each day uninsured, with a maximum penalty of $50,000.
- These employers will also be liable to any employee for compensation for their injuries as well as the possibility of being sued by the employee.
- And, continued failure to obtain workers’ compensation converge can result in an order prohibiting the employer from operating their business and can subject the employer to criminal prosecution.
It’s crucial for both employers and employees to understand their rights and responsibilities. If you have any questions about workers’ compensation or insuring your business, please contact us at Goodrich & Watson Insurers. We’re more than happy to help with whatever you may need!
