Short answer: Washington is a monopolistic workers' comp state. Employers must get coverage through the State Fund run by Labor & Industries (L&I) unless they qualify to self-insure, and private workers' comp isn't allowed. Employers must also report wages and remit Paid Family and Medical Leave premiums. The employer share applies only to businesses with 50 or more employees. Business vehicles need at least 25/50/10 liability.
This guide is general information for Washington employers and business owners. It isn't legal advice. Agency rules change, so confirm with the agencies linked below.
1. Workers' compensation through L&I
Per L&I, Washington employers generally must get workers' comp through the Washington State Fund unless they're a certified self-insurer. Private workers' comp coverage isn't available. You open an L&I account when you apply for or update your Washington business license.
2. Paid Family and Medical Leave
Per Paid Leave Washington, employers report wages and remit premiums. The premium is split between employer and employee. Employers with fewer than 50 employees generally don't pay the employer share, but must still collect and remit the employee share. Rates change annually; for 2026 the total rate is 1.13% of gross wages per the Employment Security Department.
3. Business vehicles
Per the Department of Licensing, minimum liability is $25,000/$50,000 bodily injury and $10,000 property damage. See commercial auto insurance.
State unemployment insurance
Unemployment insurance is the other employer coverage Washington makes mandatory. Per the U.S. Department of Labor's Significant Provisions of State UI Laws, January 2026, Washington employers are covered as soon as you have any covered employee. The 2026 taxable wage base is $78,200 per employee. Experience-rated employers pay 0.00% to 5.40%, and new employers start at the industry average rate (higher rates can apply by industry). Register with the state's unemployment tax agency when you hire.
Beyond the mandates
Most other coverage, like general liability, property, professional liability and cyber, comes from contracts, leases and lenders rather than Washington law. See small business insurance by industry or home-based business insurance. For-hire interstate carriers also face federal minimums under 49 CFR 387.9, starting at $750,000.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Washington.
Frequently asked questions
Can I buy private workers' comp in Washington?
No. Coverage comes through the L&I State Fund unless you qualify as a self-insurer.
Do small Washington businesses pay Paid Leave premiums?
Under 50 employees, you generally don't pay the employer share, but you still remit the employee share.
What's Washington's minimum auto liability?
25/50/10.
Do Washington employers have to pay for unemployment insurance?
Yes, once covered. The 2026 taxable wage base is $78,200, and new employers start at the industry average rate.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.