§ 687. Security for compensation
(a) Employers, not including State, county, or municipal bodies, shall secure compensation for their employees in one or more of the following ways:
(1) By insuring and keeping insured the payment of such compensation with any corporation or reciprocal or interinsurance exchange authorized to transact the business of workers’ compensation insurance in this State.
(2) By obtaining and keeping in force guarantee insurance with any company authorized to do such guarantee business within the State.
(3) By establishing and maintaining to the satisfaction of the Commissioner the employer’s financial responsibility necessary to secure payment by the employer of compensation according to the terms of this chapter. The Department of Financial Regulation shall provide technical assistance and a recommendation on each self-insurance application to the Commissioner. For purposes of this subdivision, the Commissioner shall, after consultation with the Commissioner of Financial Regulation, adopt rules and impose terms and conditions, including surety bonds, cash deposits, or reserves and excess risk insurance, as necessary to ensure the same security for compensation as provided under contract for workers’ compensation or guarantee insurance. The fund shall be free from attachment or trustee process so long as any liability for the compensation exists.
(4) By participating to the satisfaction of the Commissioner of Labor in a nonprofit, self-insurance corporation approved by the Commissioner of Financial Regulation under this chapter.
(b) In the event an employer fails to secure workers’ compensation as required by this section and an employee reasonably believes that he or she has received a personal injury by accident arising out of and in course of employment with that employer, then:
(1) If the employer is a corporation, the officers and majority stockholders of the corporation shall be personally liable for any benefits owed to the injured employee under this chapter.
(2) If the employer is a partnership, the partners shall be personally liable for any benefits owed to the injured employee under this chapter.
(3) If the employer is neither a corporation nor a partnership, the principals, executive officers, or controlling parties of the business, or all of these, shall be personally liable for any benefits owed to the injured employee under this chapter.
(c) Upon filing a claim for benefits under this chapter or if the employee elects to bring a civil action pursuant to subsection 618(b) of this title, the employee may obtain a lien against the property of the employer or the personal property of any persons described in subsection (b) of this section.
(d) The remedies provided in this section shall be in addition to any other remedies and penalties available under law.
(e) All insurance carriers authorized to write workers’ compensation insurance coverage in Vermont shall make available, at the written request of the employer, a workers’ compensation insurance rate that contains a deductible provision that binds the employer to reimburse the workers’ compensation insurer for at least the first $500.00 of benefits, medical or indemnity, due to an injured employee. Claims shall be adjusted and paid by the insurer, and the employer shall reimburse the insurer for the amount of the deductible. (Amended 1971, No. 31, § 4, eff. March 31, 1971; 1981, No. 165 (Adj. Sess.), § 6; 1985, No. 194 (Adj. Sess.), § 10; 1989, No. 225 (Adj. Sess.), § 25(b); 1993, No. 225 (Adj. Sess.), §§ 14, 28a; 1995, No. 180 (Adj. Sess.), § 38(a); 1997, No. 19, § 7; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2007, No. 208 (Adj. Sess.), § 9; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)
Structure Vermont Statutes
Chapter 9 - Employer's Liability and Workers' Compensation
§ 603. Witnesses, oaths, books, papers, records
§ 604. Manner of trying causes; evidence
§ 605. Testimony of person without the State, how taken
§ 606. Determination of questions
§ 607. Decisions; enforcement; appeals
§ 608. Application of chapter when State not an employer
§ 610. Election by State as employer
§ 618. Compensation for personal injury
§ 620. Worker hired outside State
§ 622. Right to compensation exclusive
§ 623. Contracts to work outside State
§ 624. Dual liability; claims, settlement procedure
§ 625. Contracting out forbidden
§ 632. Compensation to dependents; burial and funeral expenses
§ 633. Apportionment of compensation
§ 634. Dependents; construction
§ 635. Periods of compensation
§ 636. Compensation for unexpired period; determined
§ 637. Death benefits; rival claimants
§ 639. Death, payment to dependents
§ 640. Medical benefits; assistive devices; home and automobile modifications
§ 640a. Medical bills; payment; dispute
§ 640b. Request for preauthorization to determine if proposed treatment is necessary
§ 640c. Opioid usage deterrence
§ 641. Vocational rehabilitation
§ 642. Temporary total disability benefits
§ 642a. Temporary total; insurer review
§ 643a. Discontinuance of benefits
§ 643a. Discontinuance of benefits
§ 643b. Reinstatement; seniority and benefits protected
§ 643c. Commissioner to provide notice; monitoring
§ 644. Permanent total disability
§ 646. Temporary partial disability benefits
§ 648. Permanent partial disability benefits
§ 649. Injuries not covered; burden of proof
§ 650. Payment; average wage; computation
§ 652. Periodical payments; lump sum payments
§ 654. Trustee in case of lump payments; appointment; expense
§ 655. Procedure in obtaining compensation; medical examination; video and audio recording
§ 656. Notice of injury and claim for compensation
§ 657. After court judgment against employee
§ 658. Form of notice and claim
§ 659. Giving of notice and making of claim
§ 660. Sufficiency of notice of injury
§ 660a. Electronic filing of reports of injury
§ 662. Agreements; required payments in absence of
§ 663. Hearings, where held; decision
§ 663a. Workers’ compensation dispute mediation
§ 666. Manner of giving notice of hearing
§ 667. Examination by independent medical examiners
§ 670. Appeals to Superior Court
§ 671. Jurisdiction; findings for new award
§ 672. Appeals to the Supreme Court
§ 673. Appeal in case of fraud, accident, or mistake
§ 677. New hearings; when granted; procedure
§ 679. Fees of sheriffs and witnesses
§ 682. Liens against compensation
§ 687. Security for compensation
§ 687a. Self-insurance by associations
§ 688. Administrative penalties; insurance company’s license suspended
§ 689. Employer compelled to insure
§ 690. Certificate, form; copy of policy
§ 691. Posting of notice of compliance
§ 691a. Posting of safety records
§ 692. Penalties; failure to insure; stop work orders
§ 694. Knowledge of employer to affect insurance carrier
§ 695. Insolvency of employer not to release insurance carrier
§ 696. Cancellation of insurance contracts
§ 697. Notice of intent not to renew policy
§ 698. Insurance by State and municipalities
§ 699. Employees not to pay for insurance
§ 701. Reports of accidents by employers
§ 703. Reports of payments made by employers
§ 708. Penalty for false representation
§ 710. Unlawful discrimination