Please consider using the analysis checklist to create a cost comparison between self-insuring or insuring through L&I.
To apply for certification as a self-insured employer, an employer must meet all of the criteria below.
- Be in business for at least 3 years.
- Possess total assets of at least $25 million as verified by fully audited financial statements.
- 3 years worth of fully audited financial statements in the name of the applicant must be submitted with the application.
- Meet all of the following financial standards:
- A current liquidity ratio of at least 1.3 to 1.
- Positive debt-to-net-worth ratio of not greater than 4 to 1.
- Positive earnings in the current year and in 2 of the last 3 years.
- Overall positive earnings for the period.
- Have an L&I-approved written Accident Prevention Program (APP) in place specific to Washington State for 6 months prior to applying for self-insurance. This plan has to be tailored to each employer location.
- Complete a Self-Insurance Certification Questionnaire (F207-176-000).
- Review the SIEDRS Enrollment Package (F207-194-000).
If an employer doesn't meet these minimum requirements, L&I's Self-Insurance Section will return the application without consideration.
Rule reference: WAC 296-15-021 (www.leg.wa.gov)
Self-insurance certification requirements and application process.
