diff --git a/docs/design/kubevirt-datamover.md b/docs/design/kubevirt-datamover.md
index d8797df9fa0..52a10a0ff6d 100644
--- a/docs/design/kubevirt-datamover.md
+++ b/docs/design/kubevirt-datamover.md
@@ -43,18 +43,18 @@ Taking a VolumeSnapshot and then using kopia to process the entire volume and co
 ## High-Level design
 
 ### Upstream velero changes
-- Update velero volume policy model to allow unrecognized volume policy actions. Velero would treat unrecognized actions as "skip" (i.e. no snapshot or fs-backup), but the kubevirt datamover could only act if the policy action is "kubevirt".
+- Update velero volume policy model to allow custom volume policy actions. Velero would treat custom actions as "skip" (i.e. no snapshot or fs-backup), but the kubevirt datamover could only act if the policy action is "custom" with "datamover: kubevirt" in "parameters".
 - In `pkg/restore/actions/dataupload_retrieve_action.go` and in `DataDownload` we need to add SnapshotType.
 
 ### BackupItemAction/RestoreItemAction plugins
 - VirtualMachine BIA plugin
   - The plugin will check whether the VirtualMachine's `status.ChangedBlockTracking` is `Enabled`
   - The plugin must also determine whether the VM is running, since offline backup is not supported in the initial release.
-    - If QEMU backup is enabled, the next question is whether the user wants to use the kubevirt datamover for this VM's volumes. We will use volume policies for this, although it's a bit more complicated since a VM could have multiple PVCs. If at least one PVC for the VM has the "kubevirt" policy action specified, and no PVCs in this VM have other non-skip policies (i.e. "snapshot", etc.) then we'll use the kubevirt datamover
-	- In addition, SnapshotMoveData must be true
+    - If QEMU backup is enabled, the next question is whether the user wants to use the kubevirt datamover for this VM's volumes. We will use volume policies for this, although it's a bit more complicated since a VM could have multiple PVCs. If at least one PVC for the VM has the "custom" policy action with "datamover=kubevirt" parameter specified, and no PVCs in this VM have other non-skip policies (i.e. "snapshot", etc.) then we'll use the kubevirt datamover
+    - In addition, SnapshotMoveData must be true
     - Iterate over all PVCs for the VM
-    - If any PVC has an action other than "kubevirt" or "skip", exit without action
-    - If at least one PVC has an action of "kubevirt", then use the kubevirt datamover
+    - If any PVC has an action other than "custom" or "skip", exit without action
+    - If at least one PVC has an action of "custom" with parameter "datamover=kubevirt", then use the kubevirt datamover
   - This plugin will create a DataUpload with `Spec.SnapshotType` set to "kubevirt" and `Spec.DataMover` set to "kubevirt"
     - Note that unlike the built-in datamover, this DataUpload is tied to a VM (which could include multiple PVCs) rather than to a single PVC.
   - An annotation will be added to the DataUpload identifying the VirtualMachine we're backing up.
diff --git a/tests/e2e/lib/backup.go b/tests/e2e/lib/backup.go
index 4b77991b26f..1c931a372d8 100755
--- a/tests/e2e/lib/backup.go
+++ b/tests/e2e/lib/backup.go
@@ -62,8 +62,9 @@ const kubevirtVolumePolicyData = `version: v1
 volumePolicies:
   - conditions: {}
     action:
-      type: skip
-`
+      type: custom
+      parameters:
+        datamover: kubevirt`
 
 // EnsureKubevirtVolumePolicy creates (or updates) the volume policy ConfigMap
 // that tells Velero to skip CSI snapshots for CBT-labeled PVCs, allowing the
diff --git a/tests/e2e/sample-applications/virtual-machines/kubevirt-dm/volume-policy.yaml b/tests/e2e/sample-applications/virtual-machines/kubevirt-dm/volume-policy.yaml
index dd7f63af920..2b3543230a3 100644
--- a/tests/e2e/sample-applications/virtual-machines/kubevirt-dm/volume-policy.yaml
+++ b/tests/e2e/sample-applications/virtual-machines/kubevirt-dm/volume-policy.yaml
@@ -9,4 +9,6 @@ data:
     volumePolicies:
       - conditions: {}
         action:
-          type: skip
+          type: custom
+          parameters:
+            datamover: kubevirt
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