Virginia Business Insurance Guide 2026

Who must carry it: 3 or more regular employees (Virginia Workers' Compensation Commission, Employers); any underground coal mine operator (Va. Code 65.2-101).

As a general rule, a business with more than two employees regularly employed in Virginia is required to carry workers’ compensation coverage.

Source: Virginia Workers' Compensation Commission, Employers

Exemptions and exclusions

Va. Code 65.2-101 excludes casual employees; domestic servants; farm and horticultural laborers unless the employer regularly has more than three full-time employees; certain commission-paid real estate salespersons; qualifying taxicab drivers; interstate and intrastate railroad employees; and certain sports officials (Va. Code 65.2-101). Contractors count their subcontractors' employees toward the threshold (Virginia Workers' Compensation Commission).

The agency to ask is the Virginia Workers' Compensation Commission. To check a proposal's payroll arithmetic, use the workers' comp calculator; the workers' compensation guide explains what the coverage pays for.

The minimum auto liability coverage in Virginia:

• Bodily injury liability: $50,000 per person and $100,000 per accident
• Property damage liability: $25,000 per accident
• In force: for policies effective on or after January 1, 2025 (Code of Virginia § 46.2-472); policies effective from 2022 through 2024 had minimums of $30,000, $60,000 and $20,000
• Source: Virginia DMV, Insurance Requirements

Motor vehicle liability policies must also include uninsured motorist coverage within limits no lower than these minimums, with underinsured coverage equal to it; the statute lists exceptions (Code of Virginia § 38.2-2206). Since July 1, 2024, owners can no longer pay a fee instead of insuring a vehicle (Virginia DMV). Ask your insurer whether these also apply to your commercial and fleet policies.

The DMV notes that self-insurance or a surety bond is an option for owners of business vehicles (Virginia DMV, Insurance Requirements).

Commercial and for-hire vehicles can face different or higher federal or state requirements, and leases, lenders and clients can ask for more; see our commercial auto guide.

Virginia enacted a state paid family and medical leave insurance program in 2026 (Code of Virginia Title 60.2, Chapter 8), to be run by the Virginia Employment Commission. The Commission must establish the program by January 1, 2028, begin collecting payroll contributions on April 1, 2028, and begin paying benefits on December 1, 2028, so no contributions are due in 2026 or 2027 (Code of Virginia § 60.2-801).

Employers of more than 10 employees deduct up to 50 percent of the contribution from wages (or a lesser agreed share) and remit the full contribution (Code of Virginia § 60.2-806); employers with 10 or fewer employees are not required to pay the employer contribution (Virginia Employment Commission). Employers may apply for an approved private plan (Code of Virginia § 60.2-816).

VEC says the program is designed to provide up to 12 weeks of paid leave a year, with wage replacement of up to 80% of the employee's average weekly wage, up to a cap of the state's average weekly wage (Virginia Employment Commission).

By January 1, 2028, the Commission shall establish and administer a paid family and medical leave insurance program.

Source: Code of Virginia § 60.2-801

What employers do: Beginning April 1, 2028, remit contributions to the Virginia Employment Commission unless an approved private plan is in place: employers of more than 10 deduct up to 50 percent of the contribution; employers of 10 or fewer deduct 50 percent and make no additional contribution (Code of Virginia § 60.2-806(D) and (E)).

Beyond state law, a Virginia license, lease or client contract can impose its own insurance or bond conditions, such as general liability limits. Record each request in the certificate of insurance checklist; other states are in the requirements-by-state guide.

• Workers' compensation: Virginia Workers' Compensation Commission
• Auto liability minimums: Virginia DMV, Insurance Requirements
• Paid leave and disability insurance: Virginia Employment Commission

Before you call, the state requirements checklist lists the questions to ask. For a PolicyBenchmark follow-up about your Virginia business, request coverage help.