If your Workers Compensation policy cancels, you may receive a letter from the Virginia Workers Compensation Commission asking why your policy cancelled. If you replaced coverage through another carrier, you should give the letter to your agent for him to take care of or you can merely fill the form out with the new carrier information, sign it and send that in to the fax number or email address on the form with a copy of your new workers compensation declarations page.
If you did not replace coverage through another insurance company then you need to tell them why you cancelled your policy. If you cancelled it because you are out of business or your number of employees dropped below 3 then you need to indicate that on the form, sign it and send it in. However, keep in mind that if you sub any work out or if you are an LLC or are incorporated, the way the state determines your number of employees can get complicated so you should verify with your agent prior to determining yourself that you are no longer required to carry Workers Compensation.