Contractor Insurance Washington: Complete 2026 Guide

Washington State has specific insurance requirements for contractors that go beyond what many other states require. Whether you're a general contractor, electrician, plumber, or specialty trade professional, understanding these requirements is essential for legal compliance and protecting your business.

Washington Contractor Registration Requirements

Before you can legally perform construction work in Washington, you must register with the Department of Labor & Industries (L&I). This registration requires proof of a contractor's bond, and in most cases, proof of liability insurance. The registration must be renewed annually, and failure to maintain proper documentation can result in fines and loss of your contractor's license.

Washington defines a contractor broadly as anyone who offers to construct, alter, repair, add to, or improve any building, highway, road, or other structure. This includes general contractors, subcontractors, and specialty trades. Even if you're a sole proprietor with no employees, you're still subject to these requirements if you perform work that meets the contractor definition.

Required Insurance Types for Washington Contractors

General Liability Insurance

General liability insurance is not technically required by Washington State law, but it's practically mandatory for several reasons. First, most general contractors require subcontractors to carry at least $1 million in general liability coverage before they'll hire them. Second, many cities and counties require proof of liability insurance for building permits. Third, commercial clients and property managers universally require it.

A standard general liability policy covers bodily injury to third parties (like a homeowner who trips over your tools), property damage you cause while working, completed operations claims (problems that arise after you finish a job), and advertising injury claims. For Washington contractors, coverage typically starts around $64.99/month for basic limits.

Workers' Compensation Insurance

Washington State requires workers' compensation coverage for all workers, including business owners in most cases. Unlike other states, Washington uses a state-managed workers' compensation system through L&I rather than private insurance. You must register with L&I and pay quarterly premiums based on your payroll and risk classification.

Sole proprietors without employees can elect coverage, and it's strongly recommended. If you're injured on a job site without workers' comp coverage, you'll be responsible for all medical bills and lost wages yourself. The cost of workers' comp varies significantly by trade—office workers pay a fraction of what roofers or electricians pay.

Commercial Auto Insurance

If you use vehicles for your contracting business, Washington requires commercial auto insurance. Your personal auto policy likely excludes business use, meaning any accident while driving to a job site or hauling equipment could leave you uninsured. Commercial auto coverage includes liability for accidents you cause, collision coverage for your vehicle, and comprehensive coverage for theft or damage.

Contractor Bond

Washington requires a $12,000 contractor bond for general contractors and most specialty contractors. This bond protects consumers if you fail to complete a job, damage their property, or owe them money. It's not insurance—if a claim is paid against your bond, you must reimburse the bonding company. Still, it's a required part of doing business as a Washington contractor.

How Much Does Contractor Insurance Cost in Washington?

Contractor insurance costs in Washington vary based on several factors:

• Trade type: Roofers and demolition contractors pay more than painters or finish carpenters
• Annual revenue: Higher revenue means higher premiums
• Claims history: Previous claims increase your rates
• Coverage limits: Higher limits cost more
• Number of employees: More workers means more exposure

For a typical Washington contractor with $250,000 in annual revenue, no employees, and no claims history, you can expect to pay approximately:

• General liability: $64.99 - $199/month
• Commercial auto: $99 - $200/month per vehicle
• Workers' comp: Varies by trade (paid quarterly through L&I)
• Contractor bond: $100 - $300/year

Getting Coverage Quickly

SmartInsured specializes in Washington contractor insurance. Our system understands state-specific requirements and can provide quotes for all the coverage you need. Most contractors can get same-day coverage, which is especially helpful when you need a certificate of insurance for a new job. Coverage starts at $64.99/month for general liability.

Frequently Asked Questions

Do I need insurance as a handyman in Washington? If your jobs cost over $3,000 total, you likely need to register as a contractor and meet insurance requirements. Handyman exemptions are limited in Washington.

Can I use personal auto insurance for my work truck? No, personal auto policies exclude business use. You need commercial auto insurance for vehicles used in your contracting business.

How do I prove insurance to a general contractor? Request a certificate of insurance from your insurance provider. SmartInsured can issue same-day certificates showing your coverage limits and effective dates.

What happens if I work without insurance in Washington? You risk fines from L&I, loss of your contractor registration, personal liability for any claims, and inability to work for legitimate clients who require coverage.