Washington Workers’ Comp Exemption
We file workers’ compensation exemptions for Washington sole proprietors, LLC members, and corporate officers. Send us your details and we’ll confirm whether you qualify and handle the filing.
When coverage is required in Washington
Washington is monopolistic: workers' comp coverage is required for essentially any employer with employees, and it can ONLY be purchased through the WA Department of Labor & Industries (L&I) state fund, or via state-certified self-insurance (available only to large employers, generally described as requiring roughly $25 million or more in assets plus an approved accident-prevention program). There is no private-carrier market and no policy 'endorsement' route as exists in competitive states.
Who can be excluded in Washington
Sole proprietors
Not automatically required to cover themselves -- sole proprietors are excluded from mandatory coverage by default but may elect optional coverage from L&I by filing an Application for Elective Coverage (Form F213-042-000).
Partners
Same regime as sole proprietors: excluded by default, may elect optional coverage via the same Application for Elective Coverage (F213-042-000).
LLC members
LLC members/managers with management responsibility are excluded from mandatory coverage by default but may elect optional coverage via the same Application for Elective Coverage (F213-042-000), subject to qualifying-member criteria under WAC 296-17-31007.
Corporate officers
Corporate officer exclusion is NOT automatic in the way sole-proprietor/partner exclusion is -- it depends on qualifying under WAC 296-17-31007 and corporation type: (1) Public corporations: officer must be a bona fide officer AND director (elected per bylaws/articles), a shareholder with stock issued in their name, exercise substantial control over daily management of the entire corporation, and perform no manual labor. (2) Non-public corporations: same criteria, but WITH A CAP -- a corporation may exempt up to 8 qualifying officers; if it has more than 8, it chooses which 8 are exempt. (3) Family corporations: same qualifying criteria but officers related within the third degree by blood or marriage (parents, children, siblings, grandparents, grandchildren, great-grandparents/children, aunts, uncles, nieces, nephews) have NO numerical cap on how many may be exempt. If an employer elects coverage FOR its executive officers, all executive officers must then be covered -- selective coverage of only some officers is not allowed. Election of optional owner/officer coverage is made via Application for Elective Coverage (F213-042-000); cancellation for corporate officers/LLC members takes effect 30 days after L&I receives the cancellation notice (or a later stated date), versus immediate cancellation for sole proprietors/partners.
Construction rules in Washington
No construction-industry-specific exclusion mechanism was found in the sources reviewed beyond the general owner/officer election framework above; not verified further.
How the exemption is filed
Because Washington is monopolistic, there is no 'exemption certificate' filed to get OUT of a private policy -- everything runs through L&I directly. Owners/officers who want to be covered (the opposite of exemption) file Form F213-042-000 (Application for Elective Coverage -- Sole Proprietor, Partners, For-Profit Corporate Officers, or Member/Managers of LLC) with L&I; coverage becomes effective the day after L&I receives the completed, signed application (unless a later date is requested). To cancel elective coverage, file Form F213-004-000 (Cancellation of Elective Coverage).
- Form
- Application for Elective Coverage (F213-042-000); Cancellation of Elective Coverage (F213-004-000)
- Statute
- WAC 296-17-31007 (owner/officer coverage and coverage for exempt employments); RCW 23B.01.400(28) referenced for corporate officer definition
- Market
- Monopolistic — coverage is bought only from the Washington state fund, not a private carrier.
Notes and open questions
Washington has NO private-carrier endorsement route -- do not describe exclusion/election as a policy endorsement. It is a direct election with the state fund (L&I) itself, in the opposite direction of most exemption regimes: owners are excluded by default and must affirmatively elect IN to get coverage, not elect out. The 8-officer cap for non-public/non-family corporations is a distinctive Washington-specific rule worth calling out explicitly on the site.
Sources
- https://www.lni.wa.gov/insurance/insurance-requirements/do-i-need-a-workers-comp-account/corporate-officers
- https://www.lni.wa.gov/insurance/insurance-requirements/do-i-need-a-workers-comp-account/
- https://app.leg.wa.gov/wac/default.aspx?cite=296-17-31007
- https://lni.wa.gov/forms-publications/F213-042-000.pdf
Source material dated undated (current L&I web pages and current WAC text as accessed 2026-08-30). Compiled from official Washington sources as a starting point, not legal advice — rules change, and your situation may turn on facts this page cannot see. Confirm with Washington State Department of Labor & Industries (L&I) or ask us and we’ll check it for you.
Workers' comp exemption filing in Washington
Tell us about your Washington business and we'll confirm whether you qualify for an exemption.