In Vermont, whether a business owner or corporate officer is covered by workers' compensation — and whether they can change that — depends on the entity type and Vermont's own rules. Getting the election right affects both your protection and your premium. Here is how inclusion and exclusion work in Vermont, the form or filing to use, and what it means for your policy.
Who must carry workers' compensation in Vermont?
Mandatory for virtually all employers with one or more employees; narrow casual, small-agricultural, domestic, and family exceptions.
Can owners and officers be included or excluded in Vermont?
| Sole proprietor | Excluded only if all six statutory conditions are met; otherwise not automatically excluded. |
|---|---|
| Partners | See sole proprietors. |
| LLC members | Members are included by default; up to 4 may exclude with Commissioner approval. |
| Corporate officers | Included by default; up to 4 may exclude with Commissioner approval. The employer is relieved of carrying coverage only if all officers/members elect out and there are no other employees. |
How to make the election in Vermont
Payroll counted for an included owner in Vermont
When an owner or officer is included, premium is figured on their payroll between a minimum and maximum (effective 4/1/2026), set by NCCI.
| Included owner/officer minimum | $600 per week |
|---|---|
| Included owner/officer maximum | $4,900 per week |
Included executive officer $600–$4,900/week; covered partners, sole proprietors, and LLC members at $31,800/year. NCCI-set, changes annually.
These amounts update periodically; we confirm the current figure for your policy.
Vermont's assigned-risk / residual market
An employer that can't secure workers' comp in the standard market can still get covered through Vermont assigned risk plan (administered by NCCI; Vermont DOL oversight). We market your risk to voluntary carriers first and turn to the residual market only as a last resort.
Related
Vermont business insurance · Workers' compensation coverage · Vermont Department of Labor, Workers' Compensation Division.
Frequently Asked Questions
Do business owners have to carry workers' comp on themselves in Vermont?
It depends on your entity and role. Excluded only if all six statutory conditions are met; otherwise not automatically excluded. Included by default; up to 4 may exclude with Commissioner approval. The employer is relieved of carrying coverage only if all officers/members elect out and there are no other employees. Employees are always covered.
How do I include or exclude an owner from workers' comp in Vermont?
The right form, portal, or endorsement depends on your entity type. Vermont records the election on the policy with the carrier; our general inclusion/exclusion form documents it.
What payroll is used for an included owner in Vermont?
Included executive officer $600–$4,900/week; covered partners, sole proprietors, and LLC members at $31,800/year. NCCI-set, changes annually. We confirm the current figure for your policy.
Can Cory Washington & Co. handle my Vermont workers' comp election?
Yes. We confirm which rule applies to your entity, prepare the correct form or election, coordinate it with your carrier, and keep your workers' comp aligned with the rest of your program. Request a quote or a policy review and we'll take it from there.
This page is general educational information from Cory Washington & Co. LLC about how workers' compensation owner inclusion and exclusion works in this state. It is not legal, tax, or insurance advice and is not a determination of your eligibility or obligation. Workers' compensation laws, forms, payroll limits, and residual-market programs change and depend on your entity type, ownership, and operations. Confirm the current rules and amounts with your licensed advisor at Cory Washington & Co. LLC and the state agency before making any election.