By Law Office of Aili Obandja
A denial of a Vermont workers’ compensation claim can be discouraging, especially when you are injured, unable to work, or facing medical bills. But a denial is the insurance carrier’s position—not necessarily the final decision in your case.
The first steps are to read the denial carefully, identify exactly what the carrier is disputing, preserve every document, and determine what evidence is needed to respond. If you are unsure whether notice and the claim were properly documented, next week’s blog, How to Give Notice and File a Vermont Workers’ Compensation Claim, will provide a detailed explanation. It will be available on September 8, 2026.
Important: Do not ignore Form 2. Review the stated reason for denial, preserve every attachment, and promptly determine what evidence and procedural response may be required.
If you received Form 2:
Read the stated reason for denial.
Save the form and every attachment.
Gather evidence addressing that specific reason.
Consider submitting a written interim-order request and Form 6.
Was the Claim Accepted, Denied, or Disputed?
These terms describe different positions in a Vermont workers’ compensation case.
An Accepted Claim
A claim is accepted when the employer or carrier acknowledges responsibility for some or all covered benefits. Acceptance does not necessarily mean that every requested benefit, treatment, or period of disability will remain undisputed forever.
A carrier may also pay some benefits without prejudice while investigating. Payment without prejudice is not immediately the same as acceptance. Under Vermont Workers’ Compensation Rule 3.2300, however, if the carrier does not timely deny responsibility for the benefits being paid within 90 days after electing to pay without prejudice, it is deemed to have accepted responsibility for those benefits.
A Denied Claim
A denial means the employer or carrier has taken the position that compensation is not due. The carrier generally must decide whether compensation is due within 21 days after the employer receives notice or knowledge of the claimed injury. If it denies compensation, it must file Form 2, Denial of Workers’ Compensation Benefits within that period. If the carrier cannot decide within 21 days despite good-faith efforts, it may submit a written, properly supported request for an extension of up to 21 additional days. The request does not automatically extend the deadline. The denial must state its reasons and include the relevant supporting documents.
A carrier may deny the entire claim or dispute a particular benefit, such as medical treatment or wage-loss compensation. If requested information was not provided, the carrier must reconsider a denial based on that omission if it receives the information within 45 days after the denial.
A Disputed Claim
“Disputed” is a broader description of a claim in which the parties disagree about compensability or benefits and the disagreement has not been finally resolved. A disputed claim may involve a full denial, a disagreement about one benefit, conflicting medical opinions, or an unresolved factual issue.
A claim can therefore be accepted in part and disputed in part. Do not assume that a disagreement over one issue means the carrier has denied every aspect of the claim. If benefits were accepted and later stopped, see My Vermont Workers’ Compensation Benefits Were Suddenly Stopped. What Can I Do?.
Why a Denial Is Not Necessarily the End of the Case
The carrier does not have the final word merely because it issued Form 2. An injured worker may contest the denial and ask the Vermont Department of Labor Workers’ Compensation Division to address the dispute.
An injured worker may submit a written request for an interim order and file Form 6, Notice and Application for Hearing. After an application for hearing, the Commissioner must review the evidence supporting the denial within 60 days. For an unrepresented worker, any written communication questioning the denial is treated as an application for hearing.
If the evidence does not reasonably support the denial, the Commissioner generally must order interim payment while the case proceeds. An interim order may not be required if the benefit is not covered by Vermont workers’ compensation law, regardless of whether the carrier adequately supported its denial.
If the worker is later found not entitled to interim benefits after a hearing, the Commissioner may order repayment at the employer’s request.
The Department may review the claim informally. If the dispute is not resolved, the case may proceed to a formal hearing.
What Should You Do After Receiving a Denial?
1. Read Form 2 and Every Attachment
Identify whether the carrier denied the entire claim or a specific benefit. Write down each stated reason. Review the medical records, witness statements, employment information, or other documents included with the denial.
2. Preserve the Paperwork
Keep Form 2, the envelope or electronic delivery record, medical records, work notes, wage information, emails, text messages, and communications with the employer or adjuster. Record the date you received the denial.
3. Determine What Evidence Is Missing or Disputed
A useful response addresses the carrier’s actual reason for denial. Depending on the issue, relevant evidence may include:
A medical opinion explaining how the work caused or aggravated the condition;
Records showing when and how the injury was reported;
Witness statements or incident reports; and
Records correcting factual errors in the carrier’s investigation.
4. Request Review or a Hearing When Appropriate
Consider whether to submit a written interim-order request and Form 6. The Department may review the dispute informally before it proceeds to a formal hearing.
5. Consider Speaking With a Vermont Workers’ Compensation Attorney
An attorney can review Form 2, identify the issues actually denied, help develop supporting evidence, and advise whether to request an interim order or hearing.
Get Help With a Denied Vermont Workers’ Compensation Claim
If your Vermont workers’ compensation claim was denied, the Law Office of Aili Obandja represents injured workers in Vermont workers’ compensation matters. Call 802-556-3582 to discuss the denial and the next steps that may be available.
This blog provides general information about Vermont workers’ compensation law and is not legal advice. Reading it does not create an attorney-client relationship. Every claim depends on its facts, procedural history, and evidence.
