Extraterritorial coverage

January 2009.

Workers' compensation rules for out-of-state employers bringing workers into Washington State

Common questions employers ask about workers' compensation requirements when bringing workers into Washington State.

• When do I have to buy workers' compensation in Washington?

  You will need to purchase workers' compensation coverage in Washington when:

  • You hire a Washington worker.
  • If the work requires a contractor's license and your state has no reciprocal agreement with Washington.
  • There is a reciprocal agreement and the agreement requires you report to Washington.
• What are Washington's requirements for out-of-state employers temporarily working in the State of Washington?

  All work performed by your employees in Washington must be insured for workers' compensation. Your need to purchase Washington workers' compensation coverage depends on:

  • If your workers are coming from a state that has a reciprocal agreement with Washington State.
  • How long the workers will be in Washington State.
  • What type of work they will perform.
  • If any of the workers are Washington workers.
• What if my state has a reciprocal agreement with Washington?

  Reciprocal agreements allow you to temporarily bring your workers into Washington using your current workers' compensation policy. The agreements can vary and have exclusions, so you should refer to the reciprocal agreements at www.OutOfState.Lni.wa.gov and contact us before starting a job in Washington. Washington has reciprocal agreements with Idaho, Montana, Nevada, North Dakota, Oregon, South Dakota, Utah, and Wyoming. The agreements with Montana and Nevada do not include construction work.

• What if my state does not have a reciprocal agreement with Washington or the agreement doesn't apply beyond temporary and incidental?

  The type of work your employees perform in Washington will determine your need to pay workers' compensation premiums in Washington.

  • If the work requires a contractor's license then you will need to open a workers' compensation account and pay premiums in Washington.
  • If the work doesn't require a Washington contractor's license, you may use your current coverage for out-of-state workers temporarily in Washington. You must provide Labor & Industries (L&I) with proof of workers' compensation coverage for all work performed in Washington State.
• How do I know if I'm required to get a contractor's license?

  You can call: 800-647-0982 or 360-902-5226 or e-mail: berp235@Lni.wa.gov.

• What if my employee is injured and files an L&I claim while working in Washington?

  The answer depends on how you're required to report the worker.

  • If the claim is for an out of state worker covered under an out of state policy, the claim will be rejected.
  • If you're required or choose to pay premiums to L&I for this worker, then the claim will be considered a Washington claim.
  • If your out-of-state insurer denies a claim because it occurred in Washington or your out-of-state policy lapses, you are out of compliance with Washington regulations. You will be liable for all unpaid premium, penalties, interest, and claim costs.
• How do I open a workers' compensation account in the Washington State?

  By completing a Business License Application online at http://bls.dor.wa.gov/file.aspx or you can request an application be mailed to you by calling 1‑800‑451‑7985. Washington State does not allow private workers' compensation coverage. You must purchase your coverage from L&I or be self insured through L&I.

• What if I already have a Washington business license and now I need to open a workers' compensation account?

  You will need to submit a new Business License Application using your current UBI number. Note on your application that you will have workers in Washington State. The first hire date should be the first date you will have workers in Washington.

• Where can I get additional information?

  You can find additional information:

  • On our Web site: www.OutOfState.Lni.wa.gov.
  • By calling one of our out-of-state specialists: 360‑902‑4985.
  • Or e-mail: OutOfState@Lni.wa.gov.