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Vermont Workers Compensation Guide
Last updated: 2026 · Requirements, rates, benefits, and tips for Vermont employers and employees.
Mandatory
Yes
Employee Threshold
1+ employee
Avg. Rate / $100 Payroll
$1.78
Market Type
Private Market Only
Workers Compensation Requirements in Vermont
Vermont requires workers' compensation for all employers with one or more employees. The Vermont Department of Labor's Workers' Compensation and Safety Division oversees the system. Vermont has a relatively small workers' comp market given its small population.
Workers Comp Rates in Vermont
The average rate of approximately $1.78 per $100 of payroll is a statewide blended average — actual rates vary significantly by job classification.
For example, an employer with $1 million in payroll at the average rate of $1.78 per $100 would pay approximately $17,800 annually before experience modification adjustments.
Average Workers Comp Rates by City in Vermont
| City | Est. Avg. Rate per $100 Payroll |
|---|---|
| Burlington | $1.85 |
| South Burlington | $1.78 |
| Rutland | $1.72 |
| Barre | $1.68 |
| Montpelier | $1.75 |
| St. Johnsbury | $1.65 |
What Makes Vermont Unique
Vermont's small size means limited insurer competition in the workers' comp market. Vermont's economy — heavy in tourism, healthcare, and small manufacturing — generates workers' comp claims that reflect these industry mixes. Vermont has implemented strong safety consultation services through the Department of Labor.
Who Sets Workers’ Comp Rates in Vermont
Vermont is an NCCI state. NCCI files advisory loss costs and class codes, and each insurer applies its own approved multiplier, plus schedule credits or debits, to arrive at your rate. That’s why quotes on identical payroll and class codes can differ meaningfully in Vermont, and why comparing carriers at renewal is worth the effort. Our blended estimate of about $1.78 per $100 of payroll hides an enormous range — clerical work is typically a small fraction of that, roofing many times more.
Workers Comp Benefits in Vermont
Vermont provides temporary total disability at 66.67% of average weekly wage. Permanent impairment benefits use a schedule.
Employee Rights in Vermont
Vermont workers may choose their own treating physician after the initial authorized treatment. The Department of Labor provides hearing officers for dispute resolution.
How to Reduce Workers Comp Costs in Vermont
Vermont's small market means fewer insurer options — working with a broker who actively shops the market is important. Vermont's Department of Labor safety consultation services are a free resource for employers seeking to reduce injury rates. Return-to-work programs are valuable in Vermont's tight labor market where replacing injured workers is difficult.
Frequently Asked Questions
Does shopping lower workers’ comp premiums in Vermont?
Usually, yes. Vermont is an NCCI loss cost state, so each insurer applies its own multiplier and schedule credits to the same loss costs, and quotes on identical payroll can differ.
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The information on this page is provided for general informational purposes only and reflects estimated industry averages and state requirements as of 2026. Workers compensation laws, rates, and requirements change frequently and vary significantly by employer size, industry, and job classification. Rate estimates shown are blended averages and do not represent actual quotes for any specific employer. Always consult a licensed workers' compensation insurance professional and your state's workers' compensation regulatory agency for current, employer-specific information.