To work as a contractor in Washington you register with the Department of Labor and Industries (L&I), and that registration comes with insurance strings: you must post a bond and carry general liability insurance at set minimums, and if you have any workers you must keep an active industrial insurance account with the state fund. Registration is handled through L&I under the contractor registration law, separate from the trade licenses that electricians and plumbers also need. Getting these pieces in place is what lets you pull permits and take jobs legally.
Who this is for: Washington contractors registering for the first time or renewing, and anyone hiring a contractor who wants to know what they should carry.
The short version
- You register as a contractor with L&I and post a bond: 30,000 dollars for a general contractor, 15,000 for a specialty contractor.
- You must carry general liability insurance of at least 50,000 dollars property damage and 100,000 to 200,000 dollars for injury.
- If you have workers, you must keep an active state fund account in good standing.
- Electricians and plumbers also need their own trade licenses on top of registration.
- A prime contractor should verify a subcontractor's L&I account to avoid inheriting their premium.
What registration requires
Washington's contractor registration is run by L&I and has a few fixed pieces. You get a state business number, register, and post a surety bond: 30,000 dollars for a general contractor or 15,000 dollars for a specialty contractor, amounts that went up in 2024. You also carry general liability and property damage insurance of at least 50,000 dollars for property damage, 100,000 dollars for injury or death of one person, and 200,000 dollars for injury or death of more than one person, or an equivalent combined limit. If your business has workers, you keep an active industrial insurance account with the state fund; if you work solo with no workers, you owe no mandatory premium but can elect your own coverage.
The registration insurance pieces
| Requirement | General contractor | Specialty contractor |
|---|---|---|
| Surety bond | 30,000 dollars | 15,000 dollars |
| General liability, property damage | At least 50,000 dollars | At least 50,000 dollars |
| General liability, injury to one person | At least 100,000 dollars | At least 100,000 dollars |
| General liability, injury to more than one | At least 200,000 dollars | At least 200,000 dollars |
| State fund account if you have workers | Required | Required |
Workers comp and your subs
Two workers comp points matter for contractors. First, the bond and liability insurance are about protecting customers and third parties; they are not workers comp, so if you have a crew you still need an active state fund account, and the two are checked separately. Second, if you hire subcontractors, verify each sub's contractor registration and that their L&I account is active before work starts, because Washington can bill a prime contractor for premiums on an uninsured sub's workers. Keep that verification on file. Finally, since the state fund does not defend lawsuits, stop-gap employers liability on your general liability policy rounds out your protection.
An Olympia example
Illustrative, not a quote. An Olympia contractor registers as a general contractor, posts the 30,000 dollar bond, and buys general liability at the required limits. Because he runs a two-person crew, he also opens a state fund account and reports their hours. When he brings on a tile sub, he checks the sub's registration and active L&I account first, so he is not billed for the sub's workers. He adds stop-gap employers liability to his liability policy. See our workers comp for contractors page.
Real questions Washington owners ask
What insurance do I need to register as a Washington contractor?
You post a surety bond and carry general liability insurance at set minimums, and if you have workers you keep an active state fund account. Registration is handled through Labor and Industries.
How big does my contractor bond need to be?
A general contractor posts a 30,000 dollar bond and a specialty contractor posts a 15,000 dollar bond. Those amounts went up in 2024, so confirm the current figure when you register or renew.
What are the general liability limits for registration?
At least 50,000 dollars for property damage, 100,000 dollars for injury or death of one person, and 200,000 dollars for injury or death of more than one person, or an equivalent combined limit.
Do I need workers comp to be a registered contractor?
If you have any workers, yes, an active state fund account in good standing. The bond and liability insurance are separate from workers comp, and the state checks them separately.
I work solo with no crew. Do I owe workers comp premium?
No mandatory premium if you have no workers. You can elect your own coverage through the state fund if you want your on-the-job injuries paid, and some clients prefer to see an active account.
Do electricians and plumbers need anything extra?
Yes. Electrical and plumbing work requires its own state trade license in addition to contractor registration, and the strict worker test in those trades depends on holding that license.
How do I avoid paying for a subcontractor's workers comp?
Before work starts, verify the sub holds a valid contractor registration and an active Labor and Industries account, and keep the record. Otherwise Washington can bill you for premiums on the sub's workers.
Why Washington owners choose Morrow
- We shop the right market for you. In Washington, workers' compensation is sold only through the state fund at the Department of Labor and Industries (L&I), with no private carriers to shop, so we help you open and run your L&I account correctly and place the stop-gap employers liability and other business coverages the state fund does not include.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Washington guides
Every Washington business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Washington (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- Workers comp vs employers liability
- Washington contractor workers comp
This guide is general information, not legal advice. Washington rules and penalty amounts can change, so verify current requirements with the Washington State Department of Labor and Industries (L&I) or a licensed advisor before you rely on them. Last updated: July 2026.