Question 1

How does Washington's state-fund workers' comp work for restaurants?

Accepted Answer

Washington is one of four states that requires workers' compensation through a state fund (Department of Labor & Industries) — you cannot purchase WC from private carriers. Restaurant rates are set by L&I based on classification and experience. Costs average $0.50–$1.20 per hour worked, which is higher than most states. The advantage is consistent pricing; the disadvantage is less flexibility to shop for better rates. Good safety records earn premium discounts.

Question 2

Do Seattle restaurants need earthquake insurance?

Accepted Answer

Earthquake insurance is strongly recommended for Seattle restaurants. The city sits in the Cascadia Subduction Zone, and standard commercial property policies exclude earthquake damage. A separate earthquake policy or endorsement typically costs 15-25% of your base property premium. For a restaurant with $500,000 in property coverage, earthquake insurance might add $3,000–$6,000/year. Given the potential for a magnitude 9.0 event, this coverage is prudent.

Question 3

How do Seattle's labor laws affect restaurant insurance?

Accepted Answer

Seattle's unique labor regulations — $20.76 minimum wage, secure scheduling ordinance, and mandatory paid sick leave — create additional compliance exposure. Employment practices liability insurance (EPLI) is essential for Seattle restaurants. Scheduling violations alone can result in $500+ per affected employee per occurrence. EPLI typically costs $2,000–$5,000/year for a mid-size Seattle restaurant and covers wage disputes, scheduling claims, and discrimination allegations.

Washington Restaurants Insurance | RISKX