Workers' comp in Washington
Nobody can sell you workers' comp in Washington.
Not us, not any agency. Washington is one of four monopolistic states: workers' compensation is sold only by the state, through the Department of Labor & Industries. Here's how to open an account, what it costs, and what your business still needs from a private carrier.
See what we can insure for your business- State-run through L&I
- Not sold by any agency
- We cover the rest
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Tacoma & Auburn
How it works in this state
Why your agent can't quote it
In most states workers' compensation is sold by private insurance companies and your agent shops it like any other policy. Washington is one of four states where that is illegal. The state fund is the only seller, the rates are published, and there is nothing to shop — which also means nobody can undercut anybody.
Who it applies to
If you have employees in Washington, you need an L&I account. It applies from the first employee, including part-time and seasonal.
What it costs
You pay by hours worked, at a rate set for your risk class. A roofer's rate and an office clerk's rate are not remotely the same number.
Owners and officers
Sole proprietors, partners and corporate officers are generally exempt but can elect coverage. It's a decision worth making deliberately, not by default.
Independent contractors
L&I applies a test to decide whether someone really is a contractor. Getting it wrong is one of the most expensive mistakes a small business here makes.
How to open an L&I account
The whole thing is done with the state, not with us. It's free to set up and it usually takes one sitting.
- 1
Register the business
Through the Washington Business Licensing Service. The Business License Application is where you request the L&I account — it's one form, not two.
- 2
Get your risk classification
L&I assigns the class code that sets your rate. If you do more than one kind of work, check whether you qualify for more than one class — it can cut the bill substantially.
- 3
Report quarterly and pay
You report hours worked each quarter and pay the premium. Late reports carry penalties, and the penalty is easier to avoid than to appeal.
Offices in Tacoma and Auburn · We serve all of Washington
What we can insure, and it's most of the list
Workers' comp is the one thing the state keeps to itself. Everything else a Washington business is asked for comes from a private carrier, and that's where six of them help.
General liability
The $1M/$2M certificate your client, your GC or your landlord is asking for. It has nothing to do with L&I and it is not a substitute for it.
Commercial auto
Work trucks and vans. A personal policy can deny a claim that happened on a job.
Tools and equipment
The mowers, ladders and power tools in the back. Theft from work vehicles is common in the valley.
Contractor bond
$12,000 general / $6,000 specialty, required by L&I to register as a contractor. We handle it alongside the liability policy.
What people ask us most
Workers' comp questions in Washington
Can I buy workers' compensation from a private insurance company in Washington?
No. Washington is a monopolistic state, along with Ohio, Wyoming and North Dakota. Workers' compensation is available only from the state fund through L&I. Any private policy you're offered here is something else — read what it actually covers.
Do I need workers' comp if I'm a sole proprietor with no employees?
Generally no. Sole proprietors, partners and corporate officers are exempt by default, though they can elect coverage. The moment you hire an employee, it changes.
How much does workers' comp cost in Washington?
It's charged by hours worked at a rate set for your risk class, and the rates are published by L&I. Because the state is the only seller, the rate is the rate — there is no shopping it.
What's the difference between workers' comp and general liability?
Workers' comp covers your employees when they're hurt on the job and comes from the state. General liability covers damage or injury you cause to other people and their property, and comes from a private carrier. Most contracts require both.
My client is asking for a certificate of workers' comp insurance. What do I send?
You send proof of your L&I account in good standing, not an insurance certificate. If the client is asking for an ACORD certificate, they're usually thinking of a state where workers' comp is private — tell them Washington works differently.
We can't sell you workers' comp. We can cover everything else.
Tell us what your business does and we'll tell you exactly which pieces come from the state and which come from a carrier.
Message us on WhatsApp or call us at (877) 640-2556