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Commercial Insurance in Washington

Commercial insurance for Washington businesses, placed through the open market. Workers' comp here works differently than almost anywhere else I place business.

WASHINGTON DOESN'T LET YOU BUY WORKERS' COMP ON THE OPEN MARKET

Washington is one of only four states left with a monopolistic state workers' comp fund. Nearly every employer here gets coverage through the Washington State Department of Labor and Industries, L&I, not through a private carrier. There's no shopping it, no marketing it to different companies. You pay L&I directly, and the only way out is qualifying to self-insure, which realistically means a company large enough to post several hundred million dollars in net worth behind a letter of credit.

L&I doesn't even rate the way every other state does. Premium is calculated per hour worked, not as a percentage of payroll, across more than 300 separate risk classifications, reported to L&I every quarter rather than trued up once a year at audit.

What that means practically: an independent agent's role on a Washington account is property, general liability, commercial auto, umbrella, and management or professional liability. Workers' comp itself isn't something I place here, though a business can still get real value from a classification review or from joining an L&I retro group through a trade association, where claims-free performance earns a partial refund on premium already paid.

There's one carve-out worth knowing: maritime workers on or over navigable water can fall under the federal Longshore and Harbor Workers' Compensation Act instead of L&I, and that coverage is placed on the open market. For a business with dockside or vessel-adjacent workers around Seattle or Tacoma, that distinction matters.

WHAT ACTUALLY GETS PLACED ON A WASHINGTON ACCOUNT

Workers' comp isn't ours to place Coverage runs through L&I directly for almost every employer, rated per hour worked instead of by payroll. What I do instead is watch the account for classification accuracy and point businesses toward retro programs that can return part of what they've already paid.
The Longshore Act carve-out Maritime workers on or over navigable water can fall under federal USL&H coverage instead of the state fund, and that policy is placed on the open market.
Earthquake, separate from everything else The Cascadia subduction zone and Washington's crustal faults are real exposure, and standard commercial property excludes earthquake entirely. Seattle still has a large stock of unreinforced masonry buildings that were never required to retrofit, since the city's program is voluntary.
Pure comparative fault A business can be found mostly at fault, even 80 or 90 percent, and the other side still recovers what's left after their own share. There's no threshold that bars a claim outright.
Six-year construction tail Washington's statute of repose on construction claims runs six years from substantial completion.

If your current agent is doing right by you, I will tell you that and get out of your way.

COMMERCIAL PLACEMENT IN WASHINGTON

The Seattle-Tacoma port complex, run jointly as the Northwest Seaport Alliance, moves tens of billions of dollars in trade a year, and that drives a real cluster of drayage trucking, marine cargo, and terminal liability placement. Aerospace, anchored by Boeing and its supplier base, and a dense Seattle technology sector round out the accounts that need placement built around the actual operation.

Eastern Washington runs a different economy entirely, apple and wine country around the Columbia Basin and Yakima Valley, with rising wildfire exposure around Spokane that didn't used to show up on an underwriter's radar the way it does now.

AREAS SERVED

WASHINGTON
  • Seattle
  • Tacoma
  • Spokane
  • Everett
  • Yakima Valley

The main office is in Fort Worth, Texas. Washington accounts are commercial only, placed through the open market with specialty carriers and MGAs.

COMMON QUESTIONS

Can I shop Washington workers' comp through an agent the way I would in Texas?

No. Washington is one of four monopolistic state fund states, so nearly every employer gets coverage directly through the Department of Labor and Industries. The only alternative is qualifying to self-insure, which requires audited financials and a substantial financial guarantee.

If workers' comp isn't placed through an agent, what does an independent agent actually do for a Washington business?

Property, general liability, commercial auto, umbrella, and management or professional liability all still go through the open market. On the workers' comp side, the value an agent adds is a classification review and guidance on programs like retrospective rating.

Does earthquake coverage come with a standard commercial property policy in Washington?

No. Standard commercial property excludes earthquake, and Washington carries real seismic exposure from the Cascadia subduction zone and past events like the 2001 Nisqually earthquake. It has to be purchased separately.

REACH ME

AARON AMEDURI AGENCY LLC
Serving Washington businesses
817-292-9393
aaron@ameduriagency.com
Monday through Friday, 9am to 6pm