Industrial Insurance

Industrial Insurance (workers’ compensation) is for work related injuries and illnesses, and pays for approved medical, hospital, and related services essential to an injured worker’s treatment and recovery. It also provides partial wage replacement for injured workers who are temporarily unable to work.

Employers are required by Washington State law to carry Industrial Insurance (workers’ compensation) for employees. In return, the employer ordinarily cannot be sued for damages if a work-related injury or illness occurs.

Excluded employments

Some types of employments are exempt from the Industrial Insurance requirements. Excluded employments include:

• Sole proprietors, partners, or LLC members with management responsibility.
• Corporate officers who are directors and shareholders. If you select elective coverage for your executive officers, all executive officers must be covered.
• Persons who work in or around a private home if less than two employed, and those performing gardening, maintenance, or repair around the home.
• Persons who provide services in return for aid or sustenance received from a religious or charitable organization.
• Minors under 18 employed on the family farm.
• Racing jockeys.
• Entertainers and musicians.
• Volunteer law enforcement officers.
• Volunteers for private non-profit charitable organizations or local governments.
• Student volunteers (K-12).
• Community service workers.
• Cosmetologist, barbers, estheticians, or manicurists who lease stations.
• Newspaper carriers.
• Insurance agents, brokers and solicitors.
• Other employment as defined by RCW 51.12.020.

Self-insurance is an alternative to Industrial Insurance in which the employer is responsible for paying all appropriate benefits to the injured worker. The Department of Labor & Industries (L&I) oversees the program to ensure employers provide benefits properly. You may qualify for self-insurance if your business:

• Is profitable and can post a bond guaranteeing the financial resources to pay all insurance costs.
• Has an effective accident prevention program.
  

Licensing requirements and additional supporting documents

• Business License Application.