Not for every business. Registered construction contractors must carry it, and some licenses have their own rules. In practice the requirement comes from a landlord, client, vendor, or lender that wants proof of coverage before you sign.
FAQ_category: (HIDDEN) Industry FAQs
Within 30 calendar days of discovering the breach. If more than 500 Washington residents are affected, the Attorney General gets notice in the same window. Washington also allows a private lawsuit under the Consumer Protection Act, so the deadline carries real litigation exposure.
Registered contractors need general liability insurance and a continuous surety bond, or an approved assignment of savings. The bond is $30,000 for general contractors and $15,000 for specialty contractors. The liability minimum is $200,000 in public liability plus $50,000 in property damage, or a $250,000 combined single limit.
The penalty is $1,000 or double the premiums owed, whichever is greater. If a worker is hurt before you secure coverage, you also owe 50 to 100 percent of the claim cost. L&I can stop the job, and officers or LLC members can be held personally liable for unpaid premiums after the business dissolves.
Stop gap is an endorsement on your general liability policy that provides employers liability coverage. L&I pays benefits to an injured worker, but it does not defend you if that worker sues you. If you have employees in Washington, stop gap fills that gap. Ask for it by name.