The A-Z guide to Washington Workers' Comp

Washington State Workers’ Comp Insurance

Name: Workers' Compensation Insurance for Washington
Brand: Kickstand Insurance
Rating: 5 (37 reviews)

Washington State workers’ compensation laws mandate that all businesses have workers’ comp insurance coverage for their employees. Washington is a monopolistic state, which means businesses have to buy this insurance from the state government, not from private companies.

Required with

1 employee

Full-time, part-time, and even seasonal workers need to be covered.

Domestic workers working less than 40 hours per week are exempt.

Is workers’ comp insurance required in Washington?

Washington’s workers’ compensation laws require all businesses to provide workers’ comp insurance coverage for their employees. This includes coverage for full-time, part-time, and seasonal workers, with a few exemptions for certain types of employment.

Do you need workers’ compensation coverage if you’re self-employed?

Under Washington’s workers' compensation laws, most self-employed workers are not required to have workers’ compensation insurance.

However, workers who identify as self-employed or are 1099 as independent contractors must prove their status by providing tests, including the Personal Labor Test, to the Washington State Department of Labor and Industries.

Independent contractors must pass all tests to be exempt from workers’ comp laws.

Who is exempt from Washington workers’ comp requirements?

According to Washington’s workers’ compensation laws, the following types of workers are exempt:

Gardeners or household maintenance workers for private residences
Domestic workers working less than 40 hours per week (maids, nannies, etc.)
Sole proprietors, LLC members, or partnerships
Corporate officers that oversee daily management without performing manual labor

How much is workers’ comp coverage in Washington?

Your Washington workers’ comp rate will depend on the following factors:

The type of business you have
The size of your payroll
Your safety record
Claim history

How can Washington small business owners save money on workers' comp?

Washington small business owners can save money on workers’ compensation insurance by maintaining their workforce and working environment.

Keeping a clean, safe, secure workspace reduces risks of injuries and accidents, making it easier to maintain a good safety record to lower claim rates and ultimately reduce insurance premiums.

Small business owners can also:

Implement return-to-work programs to get workers back on the job quickly while tailoring duties to help workers manage injuries and recovery times
Exclude owner’s payroll, relying on health insurance in workers’ comp calculations
Audit preparation with accurate records can prevent overpayment and reduce the total amount business owners spend on workers’ compensation

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How does workers’ comp work in WA?

Washington is one of four monopolistic states where you can only buy workers’ comp insurance from a state fund, not private companies. This insurance is run by the Washington State Department of Labor & Industries (L&I).

Here's how it works: Businesses get their workers’ comp coverage from the state program. The premiums are based on the business’s estimated annual payroll.

After the 12-month policy term, the state audits the payroll to see if the business paid too much or too little, and then adjusts the cost accordingly.

What does workers’ comp cover in Washington?

Workers who file a workers' comp claim in Washington can receive benefits for the following:

Medical bills

Lost Wages

Death Benefits

Workers' comp coverage also protects employers from legal action. This means that if an employee sues your business because of a workplace injury, the insurance will cover the legal costs of the case.

How to get workers’ comp insurance in Washington?

In Washington, businesses usually get workers’ compensation insurance through the Washington State Fund. To apply for coverage, you need to file a business license application with the Washington Department of Revenue.

While there is an option to self-insure, this is often not feasible for smaller sized businesses because it requires setting aside substantial funds to cover potential claims.

What can happen if I don’t have workers’ comp insurance in Washington?

$250 in non-compliance fees for each day without workers’ comp coverage with a maximum of $50,000
Misdemeanor or felonious charges, depending on the severity of non-compliance
Civil lawsuits and lack of government protection, allowing employees to sue businesses for medical expenses and other damages

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FAQS

What are workers’ comp death benefits in WA?

The following death benefits are available to beneficiaries in the event of a job-related death in Washington.

Up to 200% of average monthly wages contributed to funeral and burial expenses
Monthly pensions, dependent on the deceased worker’s wages pre-injury, for surviving spouses or dependent children
One-time immediate wage payment to a spouse or registered domestic partner
Reimbursement for burial and funeral expenses if the claim is late on delivery of funds

How do workers’ comp settlements work in WA?

Known as Claim Resolution Settlement, Washington workers’ compensation laws allow employee-to-employer settlements to avoid legal repercussions. This means that claims are resolved with a one-time lump sum settlement or weekly, agreed-upon wages toward medical care, everyday expenses, and lost pay.

To be eligible for a settlement, workers must be 50 or older and have accepted a Labor and Industries claim within 180 days of their injury. Settlements can be structured over several months or in a lump-sum payment.

Before a settlement is approved, both an employer and an employee must reach an agreement that will be either accepted or denied by the Washington State Department of Labor and Industries.

What are the statutes of limitations regarding workers’ comp in WA?

Workers have one year from the date of an injury to file a Report of Industrial Injury. Claims must be filed within two years of medical written notice of a work-related disease.

Workers have three years for negligence claims and two years for intentional injuries to either settle or file a lawsuit against an employer.

How do I get a workers’ comp insurance policy with Kickstand Insurance?

Start by filling out a short online form about your business. We’ll use that info to get you an estimated quote. Then, one of our experienced agents will contact you to review the quote and make sure you are getting the absolutely lowest rate possible for your business. Once the quote is finalized, you’re ready to buy the policy - often with coverage starting that day!

Ready: Fill out an online form. It only takes 5 minutes!
Set: One of our agents will contact you to review the quote.
Go: You can get covered starting today!

Learn more about Workers' Comp in Washington

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Why does it matter?

Avoid surprise bills at audit
Make sure all your employees are properly covered
Protect yourself from lawsuits

What do we check?

Business categorized correctly
Employees job roles
Special discount opportunities