Washington Business Insurance Guide 2026

Who must carry it: 1 or more employees (RCW 51.12.010); L&I state fund or self-insurance (Revised Code of Washington 51.14.010, Duty to secure payment of compensation).

Every employer under this title shall secure the payment of compensation under this title by: (1) Insuring and keeping insured the payment of such benefits with the state fund; or (2) Qualifying as a self-insurer under this title.

Source: Revised Code of Washington 51.14.010, Duty to secure payment of compensation

Exemptions and exclusions

RCW 51.12.020 excludes, among others, domestic servants in a private home where the employer has fewer than two employees regularly working 40 or more hours a week; gardening, maintenance or repair in the employer's private home; employment outside the employer's business; sole proprietors and partners; qualifying corporate officers and LLC members; children under 18 working on the family farm; insurance producers; booth renters; and certain for-hire vehicle and taxicab owner-operators. Many of these may elect coverage (RCW 51.12.020).

Private insurers are not an option for this coverage: RCW 51.14.010 allows only the state fund or qualifying as a self-insurer (Revised Code of Washington 51.14.010, Duty to secure payment of compensation).

The agency to ask is the Washington State Department of Labor & Industries (L&I). The workers' compensation guide covers what a policy pays, and the workers' comp calculator works through payroll, rate and modifier figures you enter.

Washington's minimum auto liability limits:

• Bodily injury liability: $25,000 per person and $50,000 per accident
• Property damage liability: $10,000 per accident
• Start date: not stated in the source; confirmed in force on October 3, 2026
• Source: RCW 46.29.090 (Washington State Legislature)

For business vehicles, treat these figures as a starting point: commercial and for-hire vehicles can face different or higher federal or state requirements (see the commercial auto guide).

Washington Paid Family and Medical Leave, run by the Employment Security Department, charges a 2026 premium of 1.13% of each employee's gross wages (excluding tips) up to the $184,500 Social Security cap. Employees can be charged up to 71.43% of the premium; employers with 50 or more employees must pay the remaining 28.57%, and the rate and split both changed for 2026 (Washington Paid Leave: employer roles). Employers of every size must collect premiums, report wages and hours quarterly and notify employees (Washington Paid Leave for employers).

In 2026, the premium rate is 1.13% of each employee’s gross wages, not including tips, up to the 2026 Social Security cap ($184,500).

Source: Washington Paid Leave, Employer roles and responsibilities

What employers do: Report employees' wages and hours and remit premiums each quarter, withholding (or paying) the employee share, paying the employer share if the business has 50 or more employees, and notifying employees about the program (Washington Paid Leave for employers; Washington Paid Leave: employer roles).

The same page lists the WA Cares premium of 0.58% of gross wages; WA Cares is a separate program, not paid leave (Washington Paid Leave: employer roles).

Licenses, leases and client contracts in Washington can set their own general liability limits or certificate wording. The certificate of insurance checklist helps you track them, and the requirements-by-state guide compares states.

• Workers' compensation: Washington State Department of Labor & Industries (L&I)
• Auto liability minimums: RCW 46.29.090 (Washington State Legislature)
• Paid leave and disability insurance: Washington State Employment Security Department, Paid Family and Medical Leave

Before you call, the state requirements checklist lists the questions to ask. For a PolicyBenchmark follow-up about your Washington business, request coverage help.