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Known for its pastoral beauty and charm, Vermont boasts a captivating landscape of rolling hills, lush forests, and quaint towns steeped in New England tradition.
The Green Mountain State's economy thrives on diverse industries such as dairy farming, manufacturing, and tourism, attracting countless visitors annually.
In such a dynamic environment, safeguarding your business and employees is essential. Workers' compensation insurance provides crucial coverage for accidents and injuries, ensuring the welfare of your workforce and the sustainability of your business in Vermont's vibrant economy.
Here’s are some important things you need to know about Vermont workers’ compensation.
Workers' compensation is a state-mandated insurance program for almost all employers in Vermont with one or more employees. Coverage provides medical and financial protection for employees who suffer work-related injuries or illnesses.
Without workers' compensation, the costs associated with a work related injury could become the responsibility of your business.
According to the Vermont government website, “The Department of Financial Regulation - Insurance Division regulates issues relating to insurers and the insurance market and the Department of Labor deals with program administration and issues relating to claims.”
Businesses can obtain workers’ comp coverage through a partner like EverPeak Insurance. Alternatively, companies that meet the state’s requirements may also apply to be self-insured.
Employees can verify online if their employer has coverage.
Policies include protection for full and part-time workers.
Some exemptions from workers’ comp in Vermont include:
Workers' compensation covers a range of work-related injuries and illnesses, including physical injuries resulting from an accident and occupational diseases developed over time due to job conditions.
Vermont workers’ comp insurance provides three types of benefits for work injuries:
Injured workers are paid 2/3 of their average weekly wage.
As of 2023, Vermont’s workers’ comp weekly benefit amount maximum is $1,700.
In the event of a work-related injury or illness:
Employees in Vermont should report their injury to their employer immediately but no later than seven days from the accident.
The employee should immediately seek medical attention. If an employee cannot work they must get a written doctor’s note.
If an employer’s insurance provider accepts the claim, the worker should begin receiving benefits to cover medical expenses and lost wages.
Following their recovery, a worker is expected to resume work safely. In cases where the worker cannot fully recover to the extent that they can perform their job duties, they may be eligible to receive permanent disability payments.
In Vermont, an employer may direct the injured worker to a company doctor for their first medical visit. After that visit, the injured worker may pick their doctor by filing a Form 8 Change of Health Care Provider.
If the employer’s workers’ comp insurer has accepted the claim and the injured worker’s doctor determines that the employee cannot work for more than three calendar days, the employee should begin to receive wage replacement benefits.
If a workers’ compensation claim is denied in Vermont, the employee will receive a Denial (Form 2) from their employer’s insurer.
To appeal this denial, the injured worker must complete Form 2’s second page with written responses and provide any required supporting information and documentation. Then, the employee must file the form with the Vermont Department of Labor Workers’ Compensation Division and give a copy to their employer’s workers’ comp insurer.
Unless exempt, employers in Vermont must carry workers' compensation insurance or qualify for self-insurance. Compliance with this requirement is essential to protect both the employer and employees.
When selecting a workers' compensation insurance provider, consider factors such as the provider's experience in the industry, financial stability, coverage options, claims process, customer service, and cost.
We recommend requesting multiple quotes and comparing the offerings before making a decision.
Covering your business and employees with a trusted insurance partner — like EverPeak — brings peace of mind so you can focus on your bottom line.
In Vermont, employers who fail to provide workers' compensation insurance may be assessed a penalty of $50 per day, but not to exceed $5,000 for the period prior to receiving notice from the Commissioner of Labor.
If the employer does not provide proof of workers' compensation insurance coverage within five days of receiving notice, they will face a penalty of $150 per day.
But that’s not all — failure to obtain a workers' compensation insurance policy can have additional serious consequences. It may hurt the employer’s legal defenses if an injured employee sues them. In extreme cases, it can also lead to a state order closing the uninsured business.
In most cases, policies bar employees in Vermont from suing their employers for work-related injuries or illnesses. The workers' compensation system provides an exclusive remedy, meaning that employees typically cannot file a lawsuit against their employers. Instead, they must pursue a workers' compensation claim to receive benefits for their injuries or illnesses.
Generally, a business’s workers’ compensation policy does not cover independent contractors in Vermont. Workers' compensation laws typically apply to employees rather than independent contractors.
However, it's important to note that the classification of a worker as an independent contractor or an employee can be complex, and misclassification can lead to legal disputes. If unsure whether an independent contractor should be treated as an employee, seek legal guidance.
The incident should be reported immediately or within a few days of the occurrence. Prompt reporting helps ensure the necessary steps are taken to initiate the workers' compensation claims process.
Employees can verify online if their employer has coverage.