Vermont Restaurant Workers' Comp: Rules, Codes & Costs

By Provident Financial Group, a licensed independent insurance agency · Updated September 27, 2026 · How we write and review content

Vermont restaurants must carry workers’ compensation as soon as they have one full- or part-time employee; there is no minimum headcount. Coverage is bought from private insurance carriers, through the state’s assigned risk plan if no carrier will write it voluntarily, or through approved self-insurance. Vermont has no state fund, and operating without coverage brings daily penalties and possible stop-work orders.

This page is for owners of restaurants, bars, cafes, bakeries, caterers and food trucks in Vermont who want to understand what the law requires, how premium is figured and what actually drives kitchen injury claims.

Who has to carry workers’ comp in Vermont

The requirement applies to any employer with one or more full- or part-time employees working in Vermont. Some people and categories fall outside it: sole proprietors and partners of unincorporated businesses are not required to cover themselves, corporate officers may elect exclusion with Department of Labor approval, and resident family members, casual workers and certain farm employees are among other exemptions. The exemptions are narrow, and a misclassified worker can leave you uninsured for a real claim, so check with the Vermont Department of Labor before relying on one.

How Vermont’s workers’ comp system is set up

The Vermont Department of Labor’s Workers’ Compensation Division administers the system, while the Department of Financial Regulation oversees insurance companies. Restaurants buy coverage in the voluntary market from private carriers. If a business cannot get voluntary coverage, the assigned risk plan is the backstop. Large employers can apply to self-insure. There is no competitive state fund, and Vermont is not a monopolistic state.

Vermont uses NCCI as its rating bureau. NCCI’s Vermont advisory loss costs include class 9082 (Restaurant NOC) and 9083 (Restaurant – Fast Food), along with 9058 (Hotel Restaurant Employees) for dining operations inside hotels. The carrier assigns the class based on how your operation actually works, so an accurate description on the application matters.

Penalties for going without coverage

Under 21 V.S.A. § 692 and Department of Labor guidance, an uninsured employer faces a daily penalty for each day without coverage, capped before notice and rising substantially once the Department has given notice. The Department can also order the business closed with a stop-work order. And an uninsured employer loses key legal defenses if an injured employee sues, which can turn an ordinary kitchen injury into a business-threatening lawsuit.

The injuries behind restaurant comp claims

Burns — fryer oil changes, sheet pans, steam from dish machines and pizza ovens.
Cuts — knives, mandolines, meat slicers and broken glass in the dish pit.
Slips and falls — wet kitchen floors, grease, and snow and ice tracked in at the back door all winter.
Lifting and strain — produce cases, kegs, stock pots and repetitive scooping or plating.
Workplace violence — late-night robberies and confrontations with intoxicated customers.
Delivery driving — employees injured in crashes while making deliveries or supply runs.

What a Vermont restaurant comp policy includes

Part One, workers’ compensation — medical care and wage replacement required by Vermont law for work-related injuries.
Part Two, employer’s liability — defends the business when an injury leads to a lawsuit outside the comp system.
Other-states coverage — for staff who occasionally work a catering event or festival out of state.
Waiver of subrogation endorsements — often required by landlords, venues and general contractors.
Pay-as-you-go billing — premium based on actual payroll each period, helpful with seasonal staffing.
Return-to-work support — carrier programs that bring injured staff back on light duty.

How premium is figured, and how to bring it down

Premium starts with your payroll in each class code, multiplied by the carrier’s rate for that class. An experience modification factor then adjusts it up or down based on your own claims compared with similar businesses, once you are large enough to qualify. Schedule credits or debits, policy fees and state assessments may also apply. Front-of-house, kitchen and clerical payroll can land in different classes, so accurate payroll records matter at audit time.

To control cost: report every injury quickly, keep a return-to-work program with light-duty tasks, use anti-slip mats and footwear, require cut-resistant gloves at slicers and mandolines, train on safe lifting and oil handling, and keep payroll records by job type. Fewer and smaller claims improve your experience mod over time. For more on comp across industries, visit our sister site USA Workers Comp.

Quoting Vermont restaurant comp

Provident Financial Group is an independent agency licensed in Vermont. One application lets us compare multiple carriers side by side, and we can package comp with your liability and property coverage when that helps. After binding, you can issue live certificates of insurance to landlords and venues. Call (866) 964-6660. Coverage is subject to underwriting and policy terms.

Which insurance policy typically responds to eight common restaurant claims, from slip-and-fall to data breach

Frequently asked questions

Do I need workers’ comp for one part-time employee in Vermont?

Yes. Vermont requires coverage for any employer with one or more full- or part-time employees.

Does Vermont have a state workers’ comp fund?

No. Restaurants buy coverage from private carriers, the assigned risk plan or approved self-insurance.

Which class code will my Vermont restaurant use?

Most restaurants fall under NCCI 9082 or 9083, and hotel dining under 9058, but the carrier decides based on your operations.

What happens if an employee is hurt and I have no coverage?

You face daily penalties, a possible stop-work order and a lawsuit without key defenses, in addition to the injury costs.

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Restaurant Workers’ Compensation in Vermont