Virginia Code

Va. Code Ann. § 65.2-801 (2026)

Insurance or proof of financial ability to pay required

✓ current as of May 2026

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A. Every employer subject to this title shall secure his liability thereunder by one of the following methods:

1. Insuring and keeping insured his liability in an insurer authorized to transact the business of workers' compensation insurance in this Commonwealth;

2. Receiving a certificate pursuant to § 65.2-808 from the Workers' Compensation Commission authorizing such employer to be an individual self-insurer;

3. Being a member in good standing of a group self-insurance association licensed by the State Corporation Commission;

4. Being a member in good standing of a local government group self-insurance pool licensed by the State Corporation Commission pursuant to § 15.2-2706 to offer workers' compensation coverage; or

5. Entering into an agreement with a professional employer organization for professional employer services which includes voluntary market workers' compensation insurance for coemployees of the professional employer organization and the client company procured from an insurer authorized to transact the business of workers' compensation insurance in this Commonwealth. A professional employer organization may obtain voluntary market workers' compensation insurance in its own name for all coemployees which it shares or which are assigned or allocated to it pursuant to the agreement between the professional employer organization and the client company. The client company shall maintain separate voluntary market workers' compensation insurance insuring any and all employees of the client company not insured through the policy obtained by the professional employer organization.

B. An employer who satisfies the requirements of this section shall be certified by the Workers' Compensation Commission as an individual self-insurer and permitted to pay direct the compensation in the amount and manner and when due as provided for in this title. The Commission shall not certify an employer as a self-insurer unless it receives in such form as it requires satisfactory proof of the solvency of such employer, the financial ability of the employer to meet his obligations and the ability of the employer to pay or cause to be paid the compensation in the amount and manner and when due as provided for in this title. The Commission shall establish reasonable requirements and standards for approval of an employer as a self-insurer including, without limitation, the quality and amount of security deposits, bonds or indemnity, the amount of advance payments and reserves required, the investment of such funds, and the form and content of financial information to be submitted by the employer and the frequency of such submissions. For the purposes of any debt/equity ratio (total liabilities to net worth) minimum standard, a ratio of less than 2.2:1 shall be deemed satisfactory. The Commission shall, after notice and hearing, embody such requirements and standards and such other requirements as may be reasonably necessary for the purposes of this section in regulations. The Bureau of Insurance of the State Corporation Commission shall, at the request of the Commission, assist the Commission in establishing the reasonable requirements and standards for approval and certification of an employer as a self-insurer. The Workers' Compensation Commission may in its discretion require the deposit of a financial instrument of a specified amount from an entity approved by the Workers' Compensation Commission to secure the payment of compensation liabilities as they are incurred. The form of the instrument to be deposited shall be selected by the employer from the following list of acceptable financial instruments and may include any combination thereof so long as the amount specified by the Workers' Compensation Commission is deposited and the actual value thereof maintained: corporate surety bonds, certificates of deposit, United States government obligations, letters of credit, and cash.

C. The State Treasurer shall be the custodian of securities deposited by the employer under the requirements of this section, or under § 65.2-802, and for such services he shall receive a compensation of one-tenth of one percent per year of the amount of securities deposited with him, payable by or on behalf of such employers.

Code 1950, § 65-100; 1968, c. 660, § 65.1-104.1; 1973, c. 173; 1979, c. 463; 1991, c. 355; 1992, c. 816; 1996, c. 181; 2000, cc. 624, 718; 2004, cc. 44, 173; 2006, c. 265; 2009, cc. 285, 336.

Notes of Decisions

Cited in 14 cases (1 in the last 5 years), 1993–2025 · leading case: Uninsured Emp.'s Fund v. Mounts, 484 S.E.2d 140 (Va. Ct. App. 1997).

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Uninsured Emp.'s Fund v. Mounts, 484 S.E.2d 140 (Va. Ct. App. 1997). · cites it 17× “The Fund contends that because Greasy Creek was insured as required by Code § 65.2-801 when Mounts was last injuriously exposed to coal dust, the commission erred in ruling that the Fund was liable for Mounts’ disability.”

Turf Care, Inc. v. Henson, 657 S.E.2d 787 (Va. Ct. App. 2008). · cites it 6× “Code § 65.2-801 lists acceptable methods through which the employer may procure the insurance.”

Uninsured Emp.'s Fund v. Mounts, 497 S.E.2d 464 (Va. 1998). · cites it 18× “The Court of Appeals, in ruling against the Fund, stated: “To read Code § 65.2-801 to require only that employers have insurance on the date of the employee’s last exposure, and not on the date when the diagnosis of the disease was communicated to the employee, would exempt…”

Falls Church Constr. Corp. v. Valle, 464 S.E.2d 517 (Va. Ct. App. 1995). · cites it 13× “The deputy commissioner and the full commission found: (1) claimant sustained an injury by accident on June 23, 1993, (2) he was entitled to benefits, (3) he adequately marketed his residual work capacity, (4) he did not obstruct medical treatment, and (5) American Inner Wall…”

Uninsured Emp.'s Fund v. Flanary, 497 S.E.2d 912 (Va. Ct. App. 1998). · cites it 10× “, when an employer fails to be suitably insured as required by Code § 65.2-801 or otherwise *207 fails to satisfy a compensable claim.”

Employers Resource Mgmt. Co., Inc. v. James, 853 F. Supp. 920 (E.D. Va. 1994). · cites it 8× “This, however, fails to satisfy the requirements of Virginia’s security law, Va.Code Ann. § 65.2-801 (1950) (hereinafter “Va.”

Nationwide Mut. Ins. Co. v. The Est. of Phillip Harrison, 765 S.E.2d 154 (Va. Ct. App. 2014). · cites it 3× “Nothing in the record establishes that employer failed to comply with any of the statutory provisions of Code § 65.2-801. Therefore, we find no merit to Nationwide’s assertion that the Fund is responsible for paying compensation to the claimant.”

The Cura Grp., Inc. v. Virginia Workers' Comp. Comm'n, 612 S.E.2d 735 (Va. Ct. App. 2005). “2-804, employers — including PEOs — must file with the commission “annually or as often as may be necessary, evidence of [ ] compliance with the provisions of § 65.2-801,” which sets forth the four methods by which employers may satisfy their obligation to carry workers’…”

Uninsured Emp.'s Fund v. Monroe Henson, Jr., Windsor Farms, Inc., Cont'l Insur Co., et. at. (Va. Ct. App. 2008). · cites it 5× “Code § 65.2-801 lists acceptable methods through which the employer may procure the insurance.”

Uninsured Emp.'s Fund v. Cheryl E. Duffner & Montgomery Ward & Co. (Va. Ct. App. 2005). · cites it 4× “the Commission shall make a provisional award of compensation benefits, or any unpaid balance thereof, without further delay.”

Three H Coal Co., Inc. v. DOWCP (4th Cir. 2025). · cites it 2× “” Va. Code Ann. § 65.2-801 (A). Thus, the Workers’ Compensation Act also recognizes the distinction between insurers that are “authorized to transact the business of workers’ compensation insurance in” Virginia, Va.”

The Uninsured Emp.'s Fund v. William R. Carter (Va. Ct. App. 2013). · cites it 2× “2-1203(A)(2) provides: After an award has been entered against an employer for compensation benefits under any provision of this chapter, and upon finding that the employer has failed to comply with the provisions of § 65.2-801, or that a self-insured employer or its surety as…”

Show all 14 citing cases →

— Va. Code Ann. § 65.2-801(A) — 3 cases

Falls Church Constr. Corp. v. Valle, 464 S.E.2d 517 (Va. Ct. App. 1995). “The deputy commissioner and the full commission found: (1) claimant sustained an injury by accident on June 23, 1993, (2) he was entitled to benefits, (3) he adequately marketed his residual work capacity, (4) he did not obstruct medical treatment, and (5) American Inner Wall…”

Uninsured Emp.'s Fund v. Flanary, 497 S.E.2d 912 (Va. Ct. App. 1998). “, when an employer fails to be suitably insured as required by Code § 65.2-801 or otherwise *207 fails to satisfy a compensable claim.”

Wilmouth v. Reardon, 30 Va. Cir. 97 (Richmond County Cir. Ct. 1993).

— Va. Code Ann. § 65.2-801(A)(1) — 1 case

Uninsured Emp.'s Fund v. Mounts, 497 S.E.2d 464 (Va. 1998). “The Court of Appeals, in ruling against the Fund, stated: “To read Code § 65.2-801 to require only that employers have insurance on the date of the employee’s last exposure, and not on the date when the diagnosis of the disease was communicated to the employee, would exempt…”

— Va. Code Ann. § 65.2-801(A)(2) — 1 case

Employers Resource Mgmt. Co., Inc. v. James, 853 F. Supp. 920 (E.D. Va. 1994). “This, however, fails to satisfy the requirements of Virginia’s security law, Va.Code Ann. § 65.2-801 (1950) (hereinafter “Va.”

— Va. Code Ann. § 65.2-801(A)(l) — 1 case

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