Washington general contractor license and insurance requirements

If you plan to start a contracting business, you’ll need to register for a Washington State general contractor license. Licensing through the Washington State Department of Labor and Industries (L&I) helps verify your business and builds trust with potential customers who can find you through the state’s verified contractor directory.

Licensed general contractors in Washington can take on a wide range of construction projects — from remodeling and repairs to demolition and new builds. However, some work such as plumbing, electrical or asbestos removal requires a separate specialty contractor license and, in most cases, additional exams.

In this article, we’ll cover everything you need to know to get licensed:

• Do you need a license to be a general contractor in Washington?
• How to get a general contractor license
• Insurance requirements for Washington general contractors
• Washington surety bond requirements
• Local requirements contractor requirements
• Washington contractor license renewal
• Washington contractor license reciprocity
• How NEXT works with general contractors in Washington

Do you need a license to be a general contractor in Washington?

Washington doesn’t issue a state “license” for general contractors, but you must register as a contractor with the Washington State Department of Labor and Industries to work legally.

Contractor registration serves as the state’s version of a license — it verifies your business information, bond and insurance, and allows you to bid on and perform construction projects.

If you specialize in certain trades, such as plumbing, electrical work or HVAC, you’ll also need a separate specialty contractor license that includes specific exams and requirements.

Washington contractor license types

The most important step in getting your Washington state contractor license is to determine which type of license you will need.

• General contractors are defined as able to perform or supervise multiple building trades or crafts—from framing to finishing. They can also hire subcontractors within multiple specialties.
• Specialty contractors can only perform work in their registered specialty (such as plumbing or roofing), and they can’t hire subcontractors. The Labor & Industries department has 63 specialties that require registration and will require exams. 

How to get a general contractor license

To work legally as a general contractor in Washington State, you must register your business with the state’s L&I department. The process verifies your bond and insurance information and ensures your business is listed in the state’s public contractor directory.

Follow these steps to complete your Washington contractor registration:

Step 1: Choose your business structure

Decide whether you’ll operate as a sole proprietor, partnership, LLC or corporation. Register your business structure and name with the Washington Secretary of State. If the name is already in use, you’ll need to file a “Doing Business As” (DBA).

Step 2: Apply for a Washington business license

Once your structure and name are registered, apply for a Washington Business License through the Department of Revenue’s Business Licensing Service. You’ll receive a Unified Business Identifier (UBI) number, which you’ll need for your contractor registration.

Step 3: Purchase a surety bond

Washington requires all contractors to carry a contractor surety bond.

• General contractors: $30,000
• Specialty contractors: $15,000

Your bond must list your exact business name.

Step 4: Get business insurance

Most contractors are required to carry general liability insurance to help protect against property damage or injuries caused by your work. L&I must be listed as a certificate holder on your policy.

If you plan to hire employees, you’ll also need workers’ compensation coverage through L&I.

Step 5: Complete your registration

Bring your signed Construction Contractor Registration Application, proof of insurance and bond, and your payment to a local L&I office for notarization and submission. The registration fee is $141.10.

Once processed, your registration will appear in the verified contractor database, and you’ll receive a registration card in the mail.

Before you go: Your registration checklist

To avoid delays, make sure you bring:

• Proof of your Washington Business License and UBI number
• Your surety bond certificate
• General liability insurance certificate (NEXT can issue a digital certificate instantly)
• Your Social Security Number or Federal EIN
• A business mailing address (no P.O. boxes)
• Proof of workers’ compensation coverage (if hiring employees)
• Information about any past contractor registrations

How long does it take to get a Washington contractor license?

After you submit your contractor registration application to the Washington State Department of Labor & Industries (L&I), most registrations are processed in about three to four weeks if submitted by mail.

You’ll receive your contractor registration card in about two weeks, and get listed in the L&I verified contractor database, so customers can confirm your business.

To help speed up approval:

• Make sure your business name matches on all documents
• List L&I as the certificate holder on your insurance
• Bring all paperwork for notarization at your local L&I office

Insurance requirements for Washington general contractors

 To operate as a contractor, you’ll need a few types of Washington business insurance to stay compliant and help protect your work. Here’s what’s typically required — and what else you might want to consider.

General Liability insurance

General liability insurance is required for Washington contractors. It can help protect your business if someone other than you or an employee is injured, or if property is damaged because of your work.

You must be covered for:

• At least $200,000 in public liability and $50,000 in property damage 
• OR a $250,000 combined single limit 

Applicants must submit proof of general liability insurance meeting those thresholds and have L&I listed as a certificate holder.

Learn more about general liability for contractors.

Workers’ Compensation insurance

If you hire employees or subcontractors, you’re also required to have workers’ compensation. This coverage can help pay for medical expenses and lost wages if you or an employee gets hurt on the job.

Because Washington is a monopolistic state, workers’ comp must be purchased through L&I. You can also add employer’s liability coverage separately to help cover potential lawsuits related to workplace injuries.

Learn more about Workers’ Comp for construction workers.

Commercial Auto insurance

Driving a vehicle without liability insurance is unlawful in Washington. Your insurance must have the minimum coverages of:

• $25,000 of bodily injury of 1 person in any 1 accident.
• $50,000 of bodily injury per accident
• $10,000 of injury for destruction of property

Any vehicles owned or used by your contracting business should be covered with commercial auto insurance. If you or your employees are involved in an accident, it can provide coverage for emergency care, medical bills, property damage, vehicle damage and legal fees. 

Commercial property insurance

If you own or rent a workshop, storage yard or office space, commercial property insurance can help protect your business assets. This coverage can help pay to repair or replace your building, tools, inventory and equipment if they’re damaged by events like fire, theft or vandalism.

Tools and equipment (T&E) insurance

Tools and equipment insurance helps pay to repair or replace your gear if it’s lost, stolen or damaged — whether on a job site, in your truck or in storage. It’s an affordable add-on to your general liability policy that helps keep your projects on track.

Washington surety bond requirements

A contractor surety bond is an agreement between three parties. You, the contractor, pay a fee to have a surety bond provider guarantee your contract with your customer.  A bond is like an added level of insurance on your coverage plan. It guarantees a payment amount if certain conditions are (or aren’t) met in a contract you’ve signed.

Washington contractors must have surety bonds to operate. The amount depends on the type of license you have:

• General Contractors: $30,000
• Specialty Contractors: $15,000 (one specialty trade only)

Local requirements contractor requirements

While contractor registration in Washington is handled at the state level, some cities have their own additional requirements. If you plan to work in Seattle or Spokane, here’s what you need to know before taking on local projects.

Seattle

Contractors working in Seattle must first register with the L&I department, but the city has a few extra steps. To do business within city limits, you’ll need:

• A Seattle business license tax certificate from the Office of City Finance. 
• Additional local trade licenses, depending on your work. For example, if you perform gas piping, HVAC or refrigeration work, you must be licensed through the Seattle Department of Construction and Inspections (SDCI).

Seattle contractors are also responsible for following local building codes, permitting rules and inspections managed by SDCI. Before starting any project, it’s best to verify whether your work requires a specific city permit or inspection.

Spokane

Contractors must be registered with L&I. To do business in Spokane, add the Spokane city endorsement to your Washington business license through the state’s business licensing service. This endorsement functions as your Spokane business license and authorizes you to operate within city limits.

Washington contractor license renewal

Your Washington contractor registration must be renewed every two years through the Department of Labor & Industries.

To renew, submit your renewal form (online, by mail or in person), pay the $139.10 fee, and make sure your bond and general liability insurance are active and current. If you have employees, your workers’ compensation account with L&I must also be in good standing.

Missing the renewal deadline can result in late fees or suspension of your registration.

Washington contractor license reciprocity

Washington State does not have reciprocity agreements for general contractor registration with other states. This means contractors licensed elsewhere must complete the full Washington registration process before taking on projects in the state.

How NEXT works with general contractors in Washington

NEXT is 100% dedicated to helping self-employed construction professionals and small businesses get the right business insurance at an affordable price.

You can get a quote, purchase coverage and access the certificate of insurance you need for your Washington contractor license in a few minutes with our easy online process.

If you have any questions, our licensed, U.S.-based insurance advisors are standing by to help.

Get your instant quote today.

Are you interested in becoming a general contractor in another U.S. state? Learn what states require general contractor licenses in our summary of general contractor license requirements.

This information has been provided as a service. It is correct and up-to-date to the best of our knowledge; however, it is in no way intended to offer legal advice and you must always consult with local authorities before you make any business decisions. Regulations and requirements may change at any time.