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Washington workers' compensation insurance: Your guide to requirements and getting a policy
If you’re a Washington employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
Workers’ compensation plays a vital role in safeguarding both businesses and their teams. For employees, it ensures access to necessary medical treatment and rehabilitation services after a workplace injury. For employers, it helps prevent lawsuits and reduces the risk of substantial financial liabilities.
Now that we’ve covered the value of this coverage, let’s break down who must carry a workers’ comp policy in Washington State.
Any business operating in Washington with even a single employee, whether full-time or part-time, is legally required to maintain workers’ compensation insurance. This rule applies to various roles including real estate professionals, compensated volunteers, remote employees, and gig workers.
Some businesses are exempt but may still choose to enroll voluntarily for added protection.
Typical exemptions include:
Independent contractors
Sole proprietors
LLC owners
Business partners in corporations
Domestic gardeners or maintenance workers in private households
Household employees working fewer than 40 hours weekly
Children under 18 working for their parents
Workers already covered under the Federal Employees’ Compensation Act
Washington’s workers’ comp policies cover a range of support for job-related injuries and illnesses. Here’s what is typically included:
Medical Care
Coverage includes emergency treatment, follow-up appointments, prescriptions, and equipment or nursing care as needed. Travel expenses for medical visits may also be reimbursed.
Income Replacement
If an injury prevents an employee from returning to work, the policy covers 60–75% of their lost wages. Payments begin after a 3-day waiting period, and if the worker is out for over 14 days, those initial days are paid retroactively.
Permanent Partial Disability (PPD)
Employees who suffer a lasting injury but can still work may receive a one-time compensation. Once the award is granted, medical and wage benefits typically end.
Permanent Total Disability
For employees who are permanently and totally disabled, a lifetime pension may be granted. Survivors of a worker who dies as a result of the injury are also eligible for monthly benefits.
Vocational Rehabilitation
Employees who qualify may receive retraining through state-approved programs or create a custom plan. Financial support is available to help fund schooling or job training through Washington’s Career Bridge.
Survivor Benefits
Spouses or dependents of workers who pass away from a job-related cause are eligible for ongoing survivor benefits and burial cost coverage.
In Washington, all workers’ compensation insurance is managed through a monopolistic state fund. Coverage must be purchased through the Washington State Department of Labor & Industries (L&I), and all businesses, regardless of size or industry, are eligible.
To get started, businesses must register with the state, after which they are assigned a representative who will help set up the policy and provide necessary documentation like coverage certificates and mandatory workplace posters.
Self-Insurance Option
Larger businesses may apply for self-insurance if they meet criteria such as:
Operating for at least three years
Maintaining a written accident prevention plan for six months
Holding a net worth of at least $25 million or annual revenue of $50 million
Further financial and safety requirements may also apply.
Failing to maintain proper workers’ compensation coverage can result in penalties of up to $250 per day, capped at $50,000 total. More information can be found via Washington’s state legislative resources.
Employees should seek immediate medical care and notify the provider that the injury is job-related. The employee must then file a claim with L&I, or if their employer is self-insured, submit the claim directly to their workplace.
Employers must complete an Employer’s Report of Accident, which details the incident and provides employment information to L&I.
Filing deadlines:
For injuries: 1 year from the date of the incident
For occupational illnesses: 2 years from the date of diagnosis
Initially, injured employees may visit the nearest medical facility. For ongoing treatment, they must select a provider from the L&I-approved network, this can include their regular physician if they’re in-network. Employees can request second opinions or change doctors with prior approval.
For assistance, contact the Washington State Department of Labor & Industries. Additional guidance is available through the following:
Carrying proper coverage helps employers avoid legal risks and offers employees peace of mind during recovery. If you have questions or need help with compliance, the team at Beyond is ready to support you.
