If your Washington business has any workers, yes, you need workers compensation, and you buy it only from the state, through the Department of Labor and Industries (L&I), the agency that runs Washington's fund. Washington calls it industrial insurance, requires it from your very first worker under Title 51 of the state code, and sets no minimum headcount and no exception for part-time, seasonal, or family staff. The wrinkle that surprises owners is that you cannot shop for it: L&I is the only seller, so the real work is opening your account correctly and covering the right people.
Who this is for: Any Washington owner trying to figure out whether the law requires a policy, who has to be on it, and how the state-only system changes the usual advice.
The short version
- One worker makes coverage mandatory; Washington has no headcount minimum and no part-time exception.
- You buy from the L&I state fund only, because private companies cannot sell workers comp in Washington.
- Owners are left off by default and file a form to opt in, unlike states where owners are automatically covered.
- Premium is billed by the hour worked, not on payroll, and the worker pays about a quarter of it.
- The state fund pays benefits but will not pay a lawyer to defend you if a worker sues, so many owners add a small add-on coverage for exactly that; it is called stop-gap employers liability.
When Washington requires coverage
The trigger is simple: the first hour a covered worker works for you. There is no waiting period and no size below which you are exempt. Full-time, part-time, temporary, and seasonal workers all count from the first hour. A narrow set of jobs sits outside the mandate, such as certain household help unless you employ two or more people at 40 or more hours a week, and a child under 18 working for a parent on the family farm. Almost everyone else who works for pay is a covered worker, and farm labor generally is covered, so do not assume an exemption without checking.
Who has to be covered
| Person | Covered in Washington? | Notes |
|---|---|---|
| Your employees (W-2) | Yes, from the first hour | No headcount minimum; part-time and seasonal count |
| You, the owner | Not by default | Sole proprietors, partners, and qualifying corporation and LLC owners opt in with a form |
| A worker you call a 1099 contractor | Often yes | Treated as your worker unless a strict state test is met, stricter still in the trades |
| Volunteers | Not required | Excluded from the mandate; some may be covered by election |
Why the state-only system changes your plan
In most states you would compare carriers and prices. In Washington there is nothing to compare, because L&I is the only place to buy. That means the money-saving levers are different: making sure your people are reported in the correct work category, since rates vary a lot by the kind of work, and keeping your hours reported accurately so you are not overbilled. It also means one coverage is missing from the state policy. The state fund pays an injured worker's medical care and lost wages, but it does not hire a lawyer to defend you if someone sues you over a workplace injury, so many employers add a stop-gap employers liability endorsement to their general liability policy to fill that gap.
A Tacoma example
Illustrative, not a quote. A Tacoma cafe owner hires two part-time baristas. Even though nobody is full-time, Washington requires coverage from their first shift, so the owner opens an L&I account and reports the baristas' hours each quarter. Because premium is charged by the hour and the owner can deduct part of it from each paycheck, giving a barista a raise does not raise the premium. The owner also adds stop-gap employers liability to the shop's general liability policy so a lawsuit over an injury would be defended. See our workers comp for restaurants page.
Real questions Washington owners ask
Do I really need workers comp in Washington with just one worker?
Yes. Washington requires industrial insurance coverage from your first worker, with no minimum headcount. Part-time, temporary, and seasonal workers all count from the first hour they work.
Can I buy Washington workers comp from a private insurance company?
No. Washington is a state-fund state, so workers comp is sold only by Labor and Industries. You open a state account instead of shopping carriers. Only large, approved employers can self-insure instead.
Do I need to cover myself as the owner?
Usually not automatically. Sole proprietors, partners, and qualifying corporation and LLC owners are left off by default and file a state form if they want their own coverage. Your workers must always be covered.
Are part-time or seasonal workers exempt?
No. Washington has no part-time or seasonal exception. Anyone who works for you for pay is generally a covered worker from the first hour, so their hours have to be reported and covered.
What is not covered by the state workers comp policy?
The state fund pays a hurt worker's medical bills and lost wages, but it does not defend you if you are sued over an injury. Owners add a stop-gap employers liability endorsement to their liability policy to cover that.
Does hiring my first worker change my insurance?
Yes. The first worker triggers the duty to open an L and I account and report hours, and it is a good time to add stop-gap employers liability and confirm your general liability limits with the people you contract with.
Is farm or household help exempt in Washington?
Mostly no. Farm labor is generally covered, and household help is exempt only if you employ fewer than two people at 40 or more hours a week. A child under 18 working for a parent on the family farm is the narrow exception.
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)
- 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)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- Workers comp vs employers liability
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.