Workers Comp in Washington: L&I and Stop-Gap Coverage
Washington is one of a handful of monopolistic states. Workers compensation is provided by the state through the Department of Labor & Industries (L&I), with a few large employers qualifying to self-insure. No private insurer or broker can sell you a standard Washington workers comp policy.
That surprises owners who have run businesses elsewhere, and it creates a gap. L&I pays benefits to injured workers, but it does not include employers liability, the coverage that defends you when an injury turns into a lawsuit against the business. In Washington, that piece is bought privately as stop-gap coverage.
What it covers
- Stop-gap: lawsuits by injured employees where the law allows them, such as deliberate injury allegations
- Stop-gap: third party over actions, when someone sues you after your employee's injury
- Stop-gap: claims by family members for consequential losses
- Coverage for employees working in other states, placed separately when needed
What it does not cover
- Wage replacement and medical benefits (those come from L&I)
- Employment practices claims like discrimination or wrongful termination (EPLI)
- Injuries to independent contractors not covered by L&I
Who needs it
Every Washington employer with L&I coverage. Stop-gap is commonly added to a general liability policy, and many contracts and commercial umbrellas require it as underlying coverage.
What drives the price
- Payroll and L&I risk classifications
- Industry hazard
- Limits required by contracts or your umbrella
- Whether employees also work in other states
Where owners get caught: out-of-state work
L&I coverage is built for work in Washington. Send an employee to install a project in Oregon, hire a remote worker in Idaho, or take a job across the border, and you may need workers compensation from the other state as well. Idaho, for example, is not monopolistic: private carriers write comp there. We map where your people actually work.
Workers Comp & Stop-Gap (WA): common questions
Can I buy workers comp from a private insurer in Washington?
Not for Washington-based employees in the ordinary case. Washington requires employers to obtain coverage through L&I unless they qualify to self-insure. Private carriers can write stop-gap coverage and workers comp for other states.
What is stop-gap coverage?
Employers liability coverage for Washington employers. It fills the gap between L&I benefits and lawsuits against the business arising from an employee's injury.
Does my commercial umbrella require stop-gap?
Usually, yes. Most commercial umbrellas list employers liability as a required underlying policy. Without stop-gap, the umbrella may not respond to employee injury suits at all.
Workers Comp & Stop-Gap (WA) in practice
Illustrative stories of businesses that needed it, and what else their review turned up.
A Cleaning Company's Clients Wanted Three Things It Had Never Bought
A janitorial company bidding on office buildings kept hitting the same wall: property managers wanted stop-gap, a janitorial bond, and employment coverage. Here is how the program came together.
Stop-gapGLEPLIConstructionA Spokane Painter Took a Job in Coeur d'Alene. Washington L&I Didn't Follow His Crew.
A commercial painting company based in Spokane began taking jobs across the Idaho line. The review found its crew wasn't clearly covered for injuries in Idaho, and its stop-gap and umbrella had gaps of their own.
Stop-gapGLUmbrellaConstructionAn Electrician Moved From Arizona and Asked Where to Buy Workers Comp
An electrical contractor relocated his company to Washington and asked a simple question: which carrier writes workers comp here? The answer surprised him, and the gap it revealed is one many Washington employers miss.
Stop-gapGLAutoConstructionTree Work Is One of the Riskiest Trades in Washington. The Insurance Has to Match.
A tree removal company with bucket trucks, chippers, and climbers had L&I and a basic liability policy. The review found missing stop-gap, heavy equipment on the wrong auto policy, and no umbrella over one of the highest-hazard jobs around.
Stop-gapAutoUmbrellaManufacturingA Machine Shop Bought a New CNC Mill and Forgot to Tell Its Insurer
A precision machining shop had added nearly a million dollars of equipment over three years. Its property limit hadn't changed, and a coinsurance clause meant that even a small claim would have been cut down.
PropertyGLStop-gapConstructionA Roofer's Umbrella Only Works if the Policies Underneath It Are Right
A roofing company needed a $5 million umbrella for commercial jobs. The review found that without stop-gap and the right GL form underneath, the umbrella would not have responded to the claims roofers actually face.
UmbrellaGLStop-gapUsually written alongside
General Liability
Injury and property damage claims from customers, clients, and the public. The policy most contracts require.
Learn moreCommercial Umbrella
Extra liability limits above your GL, auto, and employers liability, usually at a lower cost per dollar.
Learn moreEmployment Practices Liability
Wrongful termination, discrimination, harassment, and retaliation claims from employees and applicants.
Learn morePart of the programs we build for contractors & trades and restaurants & food.
Not sure your stop-gap coverage fits?
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