State requirements
Washington contractors are licensed by Washington State Department of Labor & Industries (L&I) - Contractor Registration. General liability is required to hold the license. Workers compensation is required for employers with any employees.
| Licensing authority | Washington State Department of Labor & Industries (L&I) - Contractor Registration |
|---|---|
| General liability required for license | Yes |
| Statutory GL minimum | $200,000 public liability and $50,000 property damage, or $250,000 combined single limit |
| Workers compensation | Required, any employees |
| Contractor license bond | $30,000 for general contractors; $15,000 for specialty contractors (effective July 1, 2024, first increase in more than two decades) |
Verified against https://lni.wa.gov/licensing-permits/contractors/register-as-a-contractor/ in the October 2026 research pass. Where a figure is not stated, no authoritative source published one, and we say so rather than estimating.
Licensed specialists we work with write contractors in all fifty states. Tell us your trade and we will route you to one who handles Washington.
Get a Washington quoteTell us your trade, payroll and the states you work in.
Washington State Department of Labor & Industries (L&I) - Contractor Registration
Washington is a monopolistic workers' comp state - employers must obtain coverage through the Department of Labor & Industries rather than a private carrier, and any employer with one or more employees must be covered. Contractor registration requires a continuous surety bond, general liability insurance and a business license, and the state raised bond amounts on July 1, 2024.
The state sets a minimum of $200,000 public liability and $50,000 property damage, or $250,000 combined single limit. What you actually need is set by the contract in front of you. Most Washington general contractors require one million per occurrence and two million aggregate from their subcontractors, plus additional insured status and a waiver of subrogation.
Workers compensation is required for employers with any employees. Operating without it where it is required exposes the business to penalties and to direct liability for an injured worker's medical costs.
Any vehicle used for business needs commercial auto. A personal policy excludes business use in every state, and it will not cover the tools inside the truck.
General liability never covers your own tools. Inland marine covers them in transit and on site, including theft, which is the most common loss contractors actually file.
Workers compensation is required for employers with any employees.
Workers compensation covers medical costs and lost wages for a work-related injury or illness. It is separate from general liability, which covers injury to other people. If an employee is hurt on a job site in Washington, that is a workers compensation claim, and general liability will not respond to it.
Washington requires a contractor license bond of $30,000 for general contractors; $15,000 for specialty contractors (effective July 1, 2024, first increase in more than two decades). A license bond protects the consumer if you fail to complete the work or violate licensing law. It is not insurance and it does not pay a claim made against you, which is why contractors carry both.
Beyond the license bond, bid bonds and performance bonds come up on larger and public work. Bid bonds are typically priced as a percentage of the bid amount rather than a flat fee, so the cost scales with the project.
The state sets a minimum of $200,000 public liability and $50,000 property damage, or $250,000 combined single limit. That is a floor for licensing, not a recommendation, and contracts in Washington commonly require more.
Workers compensation is required for employers with any employees.
Yes. The contractor license bond is $30,000 for general contractors; $15,000 for specialty contractors (effective July 1, 2024, first increase in more than two decades). It protects the consumer, not you, and it does not take the place of insurance.
Washington State Department of Labor & Industries (L&I) - Contractor Registration.
The consequences run from losing the contract to losing the license. A general contractor who finds your certificate is not what the subcontract required will typically stop work and withhold payment until it is corrected, and an uninsured loss becomes a personal liability rather than an insurance claim.
Yes. A single policy can list every state you operate in. Pricing is driven by the highest-exposure state on the schedule, so tell us all of them rather than only your home state.
Requirements differ enough by state that it is worth checking before you bid.
Tell us your trade, payroll and what Washington requires of you.
