VRRP takes care of router failure only - the routers need to run two virtual routers for WAN, one each for Provider1 and Provider2. For the LAN side you run a third virtual router.
For provider failover, you basically advertise your network to both providers. To ensure that only Provider1 is used normally, you increase the advertised metrics towards Provider2 significantly, so that route is only ever used when the one via Provider1 fails.
For the details, you'll have to talk to your providers.