Question 1

How does Washington's L&I workers' comp work for construction?

Accepted Answer

Washington is one of four monopolistic states for workers' compensation — most employers must purchase coverage through the Department of Labor & Industries (L&I), not private insurers. Construction rates are set by L&I based on classification codes and vary by trade. You cannot shop for better rates from private carriers. L&I premiums are split between employer and employee portions. Some large employers may qualify for self-insurance, but this requires L&I approval and significant financial reserves.

Question 2

How much does construction insurance cost in Washington?

Accepted Answer

Washington construction insurance costs vary by trade and location. L&I workers' comp: $8–$15 per worker-hour for general construction. General liability: $3,000–$8,000/year. Commercial auto: $2,000–$5,000/year. Seattle metro is 15-25% more expensive than eastern Washington. A mid-size GC in Seattle might pay $15,000–$25,000/year for GL, auto, and equipment coverage (workers' comp is separate through L&I).

Question 3

Do out-of-state contractors need Washington insurance?

Accepted Answer

Yes — any contractor working in Washington must register with L&I, obtain a Washington contractor registration, and carry L&I workers' comp coverage for work performed in the state. Your home state workers' comp policy does not cover Washington operations. L&I requires registration before any work begins, and failure to register can result in stop-work orders and fines up to $5,000 per day.

Washington Construction Insurance | RISKX