Vermont § 687 - Security for compensation

§ 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.)