Washington contractor insurance requirements

Workers' comp in Washington

Any Washington business with at least one employee, even part-time, must have workers' comp through the state fund run by Labor & Industries (L&I), unless approved to self-insure. Private carriers can't write it.

The agency in charge is the Washington Department of Labor & Industries. It can tell you whether a specific business needs coverage, and most states let you look up an employer's policy online.

Contractor licensing and insurance

Washington contractor registration requires $200,000 in public liability and $50,000 in property damage, or a $250,000 combined single limit, plus a bond of $30,000 for general contractors or $15,000 for specialty contractors.

Indemnity and additional insured clauses

Washington's statute (RCW 4.24.115) voids construction clauses that make a contractor indemnify another party for that party's sole negligence. Where both share fault, indemnity is valid only to the extent of the contractor's own negligence.

What to check on a contractor COI for a Washington project

1. Workers' comp. Washington workers' comp comes only from the state fund, so a private carrier's workers' comp line on the COI doesn't cover work there. Ask for the state fund certificate, and look for stop gap employers liability, which is usually added to the general liability policy.
2. General liability. A Washington license only shows the contractor met the state's floor. Compare each limit on the COI with your project requirements, which are usually higher.
3. Additional insured. The endorsement is a separate promise from the indemnity clause, so check both. Ask for the endorsement itself, not just a box ticked on the certificate.
4. Dates. Every policy should run through the end of the job. A COI only shows coverage on the day it was issued, so check again at each renewal.

Forsured checks every contractor COI against your project requirements, then keeps checking for the life of the project. Send us one project's requirements and a contractor COI or two for a free COI risk check.