Do I need workers compensation insurance?

Workers Compensation Insurance Requirements in Washington

In Washington State, businesses that have employees are generally required to carry workers compensation insurance. This insurance covers medical costs and lost wages for employees who get injured or become ill due to their job.

When You Need Workers Compensation Insurance

• Employers with Employees: If your business has one or more employees, you must obtain workers compensation coverage through the Washington State Department of Labor & Industries (L&I) or an approved provider.
• Business Owners: Sole proprietors and partners without employees are not required to carry workers compensation insurance but can choose to opt in for coverage.
• Independent Contractors: Independent contractors are generally not covered under your policy unless explicitly included.

Operational Considerations

• Registration: Register your business with L&I to set up your workers compensation account as part of your initial business registration process.
• Payroll Reporting: Accurate payroll reporting is essential for calculating your premium. Automate payroll tracking to ensure compliance and timely premium payments.
• Employee Classification: Properly classify employees according to their job duties to avoid misclassification, which can affect your premiums and compliance status.
• Recordkeeping: Maintain detailed injury and illness records to support claims and reporting requirements.
• Compliance: Stay updated on L&I regulations and annual reporting requirements to avoid penalties and ensure uninterrupted coverage.

As of 2026, always verify your specific business situation with Washington State Department of Labor & Industries to ensure you meet all current workers compensation insurance requirements.