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September 17, 2025
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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 work arrangements are excluded from mandatory coverage under Washington law, and some business owners may also be exempt unless they elect coverage. Common examples include certain domestic service situations, limited work at a private home (gardening/maintenance/repair), work not in the course of the employer’s business, services performed only in return for aid/sustenance from a religious or charitable organization, sole proprietors or partners, and certain family-farm agricultural work by minors. Because exclusions are highly specific, employers should confirm whether a worker qualifies for an exclusion under Washington law before treating them as exempt.
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 working for more than three days immediately after the date of injury, they may qualify for time-loss compensation (partial wage replacement). In general, injured workers are not compensated for the first three days unless they are still unable to work on the seventh day following the injury. (For claims with dates of injury prior to June 6, 2024, those first three days were only paid if the worker was unable to work on the 14th day following the injury.)
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 State (a monopolistic workers’ comp state), private workers’ compensation policies aren’t allowed. Most employers must obtain coverage through the Washington State Fund administered by the Department of Labor & Industries (L&I), unless they qualify and are certified as self-insured.
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 required workers’ compensation coverage can trigger enforcement actions, including stop-work orders and civil penalties. Washington law also provides additional penalties for violating a stop-work order, and employers may face other assessments depending on the circumstances. For the most up-to-date enforcement details, consult Washington’s workers’ compensation statutes and L&I guidance.
Injured workers can file a claim with L&I online (FileFast), by phone, or at their health care provider’s office when they are first seen. Injury claims must generally be filed within one year, and occupational disease claims within two years of receiving written notice from a health care provider that the condition exists and is work-related.Â
For an initial office or emergency room visit, an employee may choose any qualified provider. For additional or ongoing treatment, care must be delivered by a provider in the L&I Medical Provider Network (including a worker’s regular provider if they are in-network). Employees can request a change of provider, but should obtain approval from the claim manager to ensure proper payment.
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.
