If your Washington partnership has any non-partner employees, yes, it must carry workers compensation on them through the state fund at the Department of Labor and Industries (L&I), from the first hour they work. The partners themselves are a different story: Washington treats partners like sole proprietors, meaning they are left off the policy by default and are not counted as workers. Partners who want the state fund to pay their own on-the-job injuries can elect into coverage, but they are never automatically on the policy.
Who this is for: Washington general partnerships, from two-person professional partnerships to family partnerships with employees on payroll.
The short version
- A partnership with any non-partner employee must open an L&I account and cover that person from the first hour.
- Partners are left off the policy by default, the same way sole proprietors are.
- Any partner who wants their own injuries covered files the state's elective-coverage form to opt in.
- You buy from the state fund only; there is no private carrier to shop in Washington.
- Because the state fund will not pay a lawyer to defend you if a worker sues, many partnerships add a small add-on coverage for exactly that; it is called stop-gap employers liability.
How Washington treats partners
Partners are not workers under Washington law. That means a partnership made up only of partners, with no other staff, owes no mandatory premium. As soon as the partnership hires a non-partner employee, that employee must be covered from the first hour, but the partners still are not required to cover themselves. A partner who wants coverage for their own work injuries files the elective-coverage form and starts reporting their hours. This is the same default that applies to sole proprietors, and it is the opposite direction from corporate officers in most other states, so a partnership that later incorporates should revisit the question.
What applies to your partnership
| Your setup | Mandatory coverage? | What to do |
|---|---|---|
| Partners only, no other staff | No mandatory premium | Each partner may file to elect their own coverage |
| Partners plus employees | Yes, for the employees | Open an L&I account and report employee hours; partners may still elect in |
| Using 1099 help | Often yes | A helper is treated as your worker unless a strict state test is met |
Deciding whether partners opt in
Because partners start off the policy, the choice is individual. A partner doing physical or hazardous work usually elects coverage, since a serious job injury is exactly what the state fund pays for. A partner who works at a desk and carries solid health and disability insurance may stay off to keep their draw out of the reported hours. Two reminders: electing coverage is done partner by partner through the state form, and the state fund never pays for a legal defense, so a partnership with employees typically adds stop-gap employers liability to its general liability policy to cover a workplace-injury lawsuit.
A Vancouver example
Illustrative, not a quote. Two partners run a Vancouver restaurant as a general partnership with four line cooks and servers. The four employees are covered through L&I from their first shift. Both partners work the floor; one elects coverage for himself because he also does deliveries, while the other stays off and relies on personal health insurance. The partnership adds stop-gap employers liability to its liability policy so an injury lawsuit would be defended. See our workers comp for restaurants page.
Real questions Washington owners ask
Does our Washington partnership need workers comp?
If you have any non-partner employees, yes, through the state fund from the first hour. If the business is only partners, there is no mandatory premium, though partners can elect their own coverage.
Are partners covered in Washington?
Not by default. Washington treats partners like sole proprietors, so they are left off the policy unless they file the state's elective-coverage form to opt in for their own injuries.
How does a partner get their own coverage?
The partner files the state elective-coverage form to opt in and then reports their work hours to the state fund. It is decided partner by partner, so one partner can be covered while another is not.
Where do we buy coverage for our employees?
Only from the state fund at Labor and Industries. Washington does not allow private workers comp carriers, so you open an L and I account and report your employees' hours rather than shopping for a policy.
Do part-time or seasonal employees count?
Yes. Washington has no part-time or seasonal exception, so any non-partner employee is covered from the first hour and those hours must be reported.
What if we use 1099 contractors?
They often count as your workers. Washington treats a contractor as your covered worker unless a strict state test is fully met, and the test is stricter in the building trades. Confirm status before relying on it.
Does the state policy defend the partnership if we are sued?
No. The state fund pays a hurt worker's benefits but does not provide a legal defense. Partnerships with employees usually add stop-gap employers liability to their general liability policy for that.
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 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)
- Do sole proprietors need workers comp?
- What workers comp does not cover
- Washington restaurant 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.