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Workers' Compensation by state

Workers' compensation requirements in Washington

Required, state fund only

Direct answer

Does Washington require workers' compensation insurance?

Yes. Washington requires workers' compensation coverage, and it is a monopolistic state: employers buy the policy through the state fund rather than the private market. Washington requires employers with one or more employees to carry workers' compensation coverage, and coverage must be obtained through the state fund administered by the Department of Labor and Industries, unless the employer qualifies for approved self-insurance.

Reviewed by Cornerstone Staff28 years of financial services state licensing experienceLast verified July 29, 2026

How the mandate works

Washington requires employers with one or more employees to carry workers' compensation coverage, and coverage must be obtained through the state fund administered by the Department of Labor and Industries, unless the employer qualifies for approved self-insurance. Private workers' compensation policies are not sold in Washington.

Coverage trigger
One or more employees
Monopolistic state
Washington is a monopolistic state, so the workers' compensation policy is purchased through the Department of Labor and Industries (L&I) rather than the private market. A broker can still help arrange the rest of the insurance program, including stop-gap employers liability coverage that the L&I policy does not include.
If you go without coverage
Employers without required L&I coverage can face penalties, personal liability for benefits, and possible criminal charges for willful violations.

Notable exemptions

Exemptions are narrow and fact-specific; confirm your situation with the regulator or an agent before relying on one.

  • Sole proprietors, partners, and certain corporate officers and LLC members who may elect coverage
  • Some domestic workers employed for limited hours in a private home
  • Certain casual labor not in the usual course of the business

Statutes and sources

  • Washington Industrial Insurance Act

    Wash. Rev. Code sect. 51.04.010 et seq.

Regulator: Washington State Department of Labor and Industries . Last verified 2026-07-29 from the official source .

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