To get workers compensation in Washington, you open an industrial insurance account with the state fund at the Department of Labor and Industries (L&I); there are no private carriers and no application to be approved or denied. Because the state fund insures every covered employer, you cannot be turned down for being new, small, or high-risk, which is a real advantage of Washington's system. The only alternative is self-insurance, which the state allows for large, financially strong employers that can prove they can pay their own claims.
Who this is for: Washington owners setting up coverage for the first time, or worried they are too small or too risky to get a policy.
The short version
- You open an L&I account with the state fund; there is no carrier to shop and no one is turned down.
- Coverage generally starts the day after L&I receives your request, unless you pick a later date.
- Have your business details, the kind of work, and expected hours ready to set up the account.
- Owners are off by default and file an elective-coverage form to opt in for themselves.
- Large, financially strong employers can apply to self-insure instead of using the state fund.
Your routes to coverage
Washington keeps it simple, because there is one main road and one exit for the largest employers. Almost everyone opens a state fund account with L&I and reports hours. There is no assigned-risk plan and no guaranteed-issue backstop, because none is needed: the state fund is the guaranteed market and takes all comers. The exit ramp is self-insurance, which is only realistic for large companies that meet financial tests, such as a high net worth or revenue, and that post a security deposit. For a small or midsize business, the state fund account is the answer.
The three paths, and who fits
| Path | Who it fits | How it works |
|---|---|---|
| State fund account | Almost every small and midsize business | Open an L&I account and report worker hours each quarter |
| Elective owner coverage | Owners who want their own injuries covered | File the state elective-coverage form and report your hours |
| Self-insurance | Large, financially strong employers | Pay your own claims with L&I approval after meeting financial tests and posting a deposit |
The steps to get covered
Getting set up is quick when you have the details ready. First, gather your business information: your ownership type, the kind of work your people do, and the hours you expect them to work. Second, open the industrial insurance account with L&I, online in most cases; coverage generally begins the day after L&I receives your request unless you ask for a later start. Third, if you are an owner who wants your own injuries covered, file the elective-coverage form to opt in. Fourth, set up quarterly reporting so you file hours and pay on time, and take the worker deduction the law allows. Finally, add stop-gap employers liability through a private insurer, since the state fund does not defend lawsuits.
A Federal Way example
Illustrative, not a quote. A Federal Way plumber is about to hire his first two apprentices and needs coverage before they start. He opens an L&I account online with the kind of work and expected hours, and coverage begins the next day, so the apprentices are covered from their first shift. He cannot be turned down for being a new employer, because the state fund takes everyone. He also elects owner coverage for himself and adds stop-gap employers liability to his liability policy. See our workers comp for plumbers page.
Real questions Washington owners ask
How do I get workers comp in Washington?
You open an industrial insurance account with the state fund at Labor and Industries, usually online. There are no private carriers to shop, and you report your workers' hours to the state each quarter.
Can I be turned down for coverage in Washington?
No. The state fund insures every covered employer, so you cannot be denied for being new, small, or high-risk. That is why Washington has no assigned-risk plan; the state fund is the guaranteed market.
When does my coverage start?
Generally the day after Labor and Industries receives your request, unless you ask for a later start date. Open the account before your first worker's shift so they are covered from the first hour.
What information do I need to open an account?
Have your ownership type, the kind of work your people do, and the hours you expect them to work. Accurate details up front help put your workers in the right job category and avoid billing surprises.
Can I cover myself as the owner?
Yes, by choice. Owners are off by default in Washington, so you file the state's elective-coverage form to opt in and then report your own hours if you want the state fund to pay your injuries.
Can I self-insure instead of using the state fund?
Only large, financially strong employers can, with state approval, after meeting financial tests and posting a security deposit. Most small and midsize businesses simply open a state fund account instead.
Do I still need anything the state fund does not sell?
Yes, consider stop-gap employers liability. The state fund pays a hurt worker's benefits but does not defend a lawsuit, so that coverage is bought from a private insurer as an add-on to general liability.
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?
- 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
- Washington plumber 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.