Question 1

How does Washington's workers' comp system work for tech companies?

Accepted Answer

Washington is a monopolistic workers' comp state — all employers must purchase coverage through the Department of Labor & Industries (L&I). You cannot shop private carriers. L&I rates for tech/office workers are relatively low (around $0.50–$1.50 per hour worked), but the system is less flexible than private market states. Some employers self-insure, but this requires significant financial reserves.

Question 2

What insurance do Seattle tech startups need?

Accepted Answer

At minimum: workers' comp through L&I (mandatory), general liability, and professional liability (E&O). Most VCs and enterprise clients also require cyber liability. As you scale, EPLI becomes important given Seattle's competitive talent market. A typical seed-stage package costs $4,000–$10,000/year.

Washington Technology Insurance | RISKX