A Vermont workers comp exemption lets certain business owners legally go without workers’ compensation coverage on themselves — Sole proprietors and partners of unincorporated businesses are not covered and don’t have to carry coverage, though they can choose to buy it. A corporation can exclude up to 4 corporate officers (President, Vice President, Secretary, Clerk or Treasurer). An LLC can exclude up to 4 managers or members.
In both cases the business files one application per person with the Vermont Department of Labor. — while the law still requires coverage for employees once a business has 1 or more. This guide explains who qualifies for the Vermont workers comp exemption, the exact form, where to file it, what it costs, and what an exempt owner gives up. Verified against Vermont sources as of October 2026.
Vermont at a Glance
| Coverage required at | 1 employee(s) |
| Who may elect out | Sole proprietors and partners of unincorporated businesses are not covered and don’t have to carry coverage, though they can choose to buy it. A corporation can exclude up to 4 corporate officers (President, Vice President, Secretary, Clerk or Treasurer). An LLC can exclude up to 4 managers or members. In both cases the business files one application per person with the Vermont Department of Labor. |
| Exemption form | Vermont Department of Labor Form 29, “Application To Exclude Corporate Officers or LLC Members From Workers’ Compensation Coverage.” Sole proprietors and partners don’t need any form because they are not covered by default. |
| Filed with | Vermont Department of Labor, Workers’ Compensation Division, 5 Green Mountain Drive, PO Box 488, Montpelier, VT 05601-0488, phone 802-828-2286. The form is at https://labor.vermont.gov/sites/labor/files/doc_library/Form29-11-22-FillIn_0.pdf |
| Renewal | An approved exclusion stays in effect until the business asks to rescind it. No yearly renewal is needed, according to the Vermont Department of Labor’s Form 29 materials. |
| Penalty for being uninsured | Under 21 V.S.A. § 692, an employer who fails to carry required coverage can be fined up to 100 per day for the first 7 days and up to 150 per day after that. The Commissioner can also issue an emergency stop-work order until coverage is in place. If the employer still has no coverage after an order to obtain insurance, it can be fined up to 250 per day and up to 250 per employee per day. |
In This Vermont Guide:
Who Qualifies for A Vermont Workers Comp Exemption
Sole proprietors and partners of unincorporated businesses are not covered and don’t have to carry coverage, though they can choose to buy it. A corporation can exclude up to 4 corporate officers (President, Vice President, Secretary, Clerk or Treasurer). An LLC can exclude up to 4 managers or members. In both cases the business files one application per person with the Vermont Department of Labor.
Under 21 V.S.A. § 601(14), a corporation can choose to exclude up to 4 executive officers from coverage. Corporate officer means the President, Vice President, Secretary, Clerk or Treasurer. The business files one Form 29 per officer, with a notarized copy of the Board of Directors meeting minutes. The minutes must show the person was elected an officer and that the directors approved the exclusion.
The exclusion starts no earlier than the date the Commissioner receives a complete application and the required minutes. A corporation is fully excluded from the coverage requirement only when every officer is excluded and it has no workers.
Under 21 V.S.A. § 601(14), an LLC can exclude up to 4 managers or members by filing Form 29 with a notarized affidavit (a blank affidavit comes with the form). An LLC is fully excluded only when every member is excluded and it has no workers. Partners of an unincorporated partnership are not covered and don’t have to carry coverage, but they can choose to buy it.
How to File the Vermont Workers Comp Exemption
The form is Vermont Department of Labor Form 29, “Application To Exclude Corporate Officers or LLC Members From Workers’ Compensation Coverage.” Sole proprietors and partners don’t need any form because they are not covered by default.. It is filed with Vermont Department of Labor, Workers’ Compensation Division, 5 Green Mountain Drive, PO Box 488, Montpelier, VT 05601-0488, phone 802-828-2286. The form is at https://labor.vermont.gov/sites/labor/files/doc_library/Form29-11-22-FillIn_0.pdf.
Renewal: An approved exclusion stays in effect until the business asks to rescind it. No yearly renewal is needed, according to the Vermont Department of Labor’s Form 29 materials.. Filing on the state’s own site costs nothing beyond any statutory fee — the “exemption filing services” that advertise on this search charge for the same form.
Vermont Workers Comp Exemption Rules at a Glance
The exact Vermont workers comp exemption rules every owner should check before deciding to go without coverage:
| Employee threshold | 1 |
| Who may elect out | Sole proprietors and partners of unincorporated businesses are not covered and don’t have to carry coverage, though they can choose to buy it. A corporation can exclude up to 4 corporate officers (President, Vice President, Secretary, Clerk or Treasurer). An LLC can exclude up to 4 managers or members. In both cases the business files one application per person with the Vermont Department of Labor. |
| Corporate officers | Under 21 V.S.A. § 601(14), a corporation can choose to exclude up to 4 executive officers from coverage. Corporate officer means the President, Vice President, Secretary, Clerk or Treasurer. The business files one Form 29 per officer, with a notarized copy of the Board of Directors meeting minutes. The minutes must show the person was elected an officer and that the directors approved the exclusion. The exclusion starts no earlier than the date the Commissioner receives a complete application and the required minutes. A corporation is fully excluded from the coverage requirement only when every officer is excluded and it has no workers. |
| LLC members and partners | Under 21 V.S.A. § 601(14), an LLC can exclude up to 4 managers or members by filing Form 29 with a notarized affidavit (a blank affidavit comes with the form). An LLC is fully excluded only when every member is excluded and it has no workers. Partners of an unincorporated partnership are not covered and don’t have to carry coverage, but they can choose to buy it. |
| Form | Vermont Department of Labor Form 29, “Application To Exclude Corporate Officers or LLC Members From Workers’ Compensation Coverage.” Sole proprietors and partners don’t need any form because they are not covered by default. |
| Where to file | Vermont Department of Labor, Workers’ Compensation Division, 5 Green Mountain Drive, PO Box 488, Montpelier, VT 05601-0488, phone 802-828-2286. The form is at https://labor.vermont.gov/sites/labor/files/doc_library/Form29-11-22-FillIn_0.pdf |
| Renewal | An approved exclusion stays in effect until the business asks to rescind it. No yearly renewal is needed, according to the Vermont Department of Labor’s Form 29 materials. |
What A Vermont Workers Comp Exemption Gives Up
An exempt owner who is hurt on the job in Vermont has no workers’ comp claim: no medical coverage from the policy, no wage replacement and no disability award. Health insurance may exclude work injuries. Most owners who physically work the job keep themselves covered for that reason.
One honest paragraph on the “ghost policy”: a minimum-premium policy with no employees sold to owners who need a certificate of insurance. It is legal in many states, but it is not a Vermont workers comp exemption — it is coverage with nobody on it. If you add a worker, it must be reported, or the audit will find them.
Workers Exempt by Law in Vermont
Separate from the owner’s election, Vermont law exempts some classes of workers from coverage — commonly domestic workers below a threshold, casual labor, some farm labor and licensed real-estate agents paid by commission. A worker who does not fit a listed class counts toward the threshold, no matter what the 1099 says.
Proving A Vermont Workers Comp Exemption or Coverage
General contractors and clients in Vermont ask for proof before work starts: a certificate of insurance for covered employers, or the filed exemption certificate for exempt owners. Many states also run a public coverage-verification lookup on the agency site.
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Why the Vermont Workers Comp Exemption Matters
The Vermont workers comp exemption is a trade: lower cost today against no safety net if you are hurt. The second half of the trade is the one the search results never lead with. Coverage is required with even 1 full-time or part-time employee. That includes employees hired from outside Vermont who work in Vermont, unless the employer is approved by the Department of Labor to self-insure.
The farm exclusion applies only when total farm payroll is under 10000 per calendar year. Form 29 exclusions take effect no earlier than the date the Commissioner receives a complete application, so they don’t apply to earlier periods. For corporations the exclusion is limited to the officer titles listed above. If a hired contractor lacks coverage, the hiring party can become responsible for covering that contractor’s workers.
Rules can change, so confirm current details with the Vermont Department of Labor and a licensed attorney. If the Vermont workers comp exemption rules above leave any doubt about whether a worker counts, ask the state agency before you decide — the answer is free, and the penalty for guessing wrong is not.
Employer side: the Vermont requirements guide covers the threshold, who counts and the penalties in full. Hurt while exempt? You may still have a claim against a third party — a licensed attorney can say.
Frequently Asked Questions
Who can file a workers comp exemption in Vermont?
Sole proprietors and partners of unincorporated businesses are not covered and don’t have to carry coverage, though they can choose to buy it. A corporation can exclude up to 4 corporate officers (President, Vice President, Secretary, Clerk or Treasurer). An LLC can exclude up to 4 managers or members. In both cases the business files one application per person with the Vermont Department of Labor.
What form is the Vermont workers comp exemption?
Vermont Department of Labor Form 29, “Application To Exclude Corporate Officers or LLC Members From Workers’ Compensation Coverage.” Sole proprietors and partners don’t need any form because they are not covered by default.. File it on the state’s own site; filing services charge for the same form.
Can an exempt owner in Vermont still collect benefits if hurt?
No. An exemption removes the owner from coverage, so there is no claim for medical care or lost wages. That is the trade.
Official Vermont Sources & Resources
- Vermont Vermont Department of Labor, Workers’ Compensation and Safety Division: https://labor.vermont.gov/workers%E2%80%99-compensation
- Vermont Workers’ Comp Statute: https://legislature.vermont.gov/statutes/section/21/009/00601
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
This Vermont workers comp exemption guide was last verified against official Vermont sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
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Disclaimer: This guide is informational only and is not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm or insurer. Workers’ comp benefits, settlement values, deadlines, and requirements vary by state and by the specific facts of your injury and change over time, and any settlement figures here are illustrative only.
Confirm your rights and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.