Washington is a monopolistic workers compensation state
Unlike most states, Washington does not allow private workers compensation insurance. Coverage is provided almost exclusively through the Washington State Department of Labor & Industries (L&I), a state-run monopoly. Employers pay premiums to L&I (called “industrial insurance”), not to private carriers. There is no competitive market for workers comp in Washington, and no private alternative unless you qualify as self-insured.
How the L&I system works
Employers must register with L&I and pay premiums based on their payroll hours worked and industry risk class. L&I assigns your business to a risk class (construction, office, retail, manufacturing, etc.), and your premium rate is determined by that class code and your actual claims history. L&I covers all medical costs and lost wages for employees injured on the job, with no waiting period for medical treatment and a one-week waiting period for wage replacement.
- Medical coverage. L&I pays for all medical treatment related to a work injury, with no maximum limit
- Wage replacement. employees receive two-thirds of average weekly wages after a one-week waiting period, up to a state maximum
- Vocational rehabilitation. if an employee cannot return to their previous job, L&I may fund retraining
- Disability benefits. temporary total disability, permanent partial disability, and permanent total disability benefits
What employers must do
Register with L&I when you first hire employees. Post L&I notices in your workplace. Report injuries to L&I within 30 days. Maintain safe working conditions (workers can file “accident prevention” petitions if they believe the workplace is unsafe). Pay L&I premiums on time. You may qualify for premium reductions if your business has a strong safety record and low claims experience.
Estimating your L&I costs
L&I premium rates vary by industry risk class. Construction and trades typically fall in higher classes with higher rates per $100 of payroll. Office and clerical work falls in lower classes. You can check your specific rate online at the L&I website or work with Maru to estimate costs before hiring.
Self-insured employers
Large employers (typically $1+ million annual payroll) may qualify to self-insure for workers compensation, holding their own reserves instead of paying L&I premiums. This requires L&I approval and is complex. Maru does not handle self-insurance directly but can refer you to a specialist.
Why pair L&I with Maru commercial coverage
While Maru cannot provide workers compensation insurance in Washington (L&I is the sole provider), we help you understand your L&I obligations, estimate costs, and combine L&I coverage with general liability, commercial property, commercial auto, and professional liability—creating a comprehensive commercial insurance program.
Frequently asked questions
Can I buy private workers compensation insurance in Washington?
How much will L&I cost my business?
What happens if an employee is injured on the job in Washington?
Do I need other insurance beyond L&I?
Licensed independent insurance agent · WA & FL
Written and reviewed by a licensed Maru advisor. Maru Insurance is an independent agency (WA License WAOIC #1365574, FL License #G363233) representing multiple A-rated carriers across Washington and Florida.
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