Washington Business Insurance

Small business growth in Washington state is outpacing the national rate. The 700,000-plus small companies in the state employ more than 1.4 million of its workers.¹

If you own a small company in Washington, it’s critical to purchase the right business insurance to help protect against unforeseen events such as:

• Allegations of injury
• Property damage
• Employees who get hurt on the job
• Accusations of professional negligence
• Accidents that happen when driving for business

Next Insurance helps more than 1,000 types of small businesses and self-employed workers quickly get the coverage they need online at the best price. We specialize in small business insurance, so we can easily help you find a custom insurance package that is right for you.

Continue reading to find out about the most important types of business insurance in Washington state or start a free instant quote to review options for your business.

We offer a quick and simple way for you to get business insurance quotes online, purchase coverage and share your certificate of insurance. The entire process typically takes just a few minutes.

Our team of licensed, U.S.-based advisors can help you if you have any questions. 

Start an instant quote today.

Factors that will inform what kind of coverage (and how much) your company needs include:

• Regular business risks, such as how often you drive company vehicles for work
• Your industry and the likelihood of injuries or property damage
• The number of people you employ

Business insurance packages in Washington state typically include:

• General liability insurance, which helps pay damages if someone claims that your company is responsible for injury or property destruction.
• Workers’ compensation insurance, a form of coverage that helps employees who are hurt on the job pay for medical expenses, physical rehab and lost wages.
• Professional liability insurance, which is also called errors and omissions (E&O) insurance. This coverage helps cover damages and lawsuit costs if your company is accused of a professional oversight that causes a client financial losses.
• Commercial auto insurance, which helps pay for damages that happen when you or an employee has an accident while driving for business.

Continue reading to find out about the most important types of business insurance in Washington or start a free instant quote to review options for your business.

General Liability insurance 

We recommend that all small businesses in the Evergreen State carry general liability insurance. 

This coverage will help pay for damages if someone says that your actions caused injury or property destruction, including related lawsuit costs.

For instance, a customer at a small grocery store in Seattle needs medical attention after slipping on a wet floor. General liability insurance would help pay for the customer’s medical bills. 

If the customer brought a lawsuit that claimed the business owner was responsible for the injury, general liability insurance in Washington state would help cover legal expenses, including attorney costs and settlements.

Cleaning and construction companies can boost their general liability insurance with tools and equipment coverage. If business gear is lost, stolen or damaged, this add-on helps pay to replace or repair it.

Workers’ Compensation insurance

Washington state requires that companies with employees carry workers’ compensation insurance to help staff members who get hurt at work pay for medical expenses and recoup lost wages while they recover.

Recent workers’ comp law changes in Washington increase financial penalties for businesses that don’t comply with state requirements.²

Here’s how workers’ comp coverage might help protect a small business in Washington:

An employee of a window cleaning company in Spokane suffers an on-the-job injury and requires a hospital visit. Workers’ comp insurance helps the business owner cover the injured employee’s medical expenses, including physical therapy.

Professional Liability (E&O) insurance 

Professional liability insurance is also known as errors and omissions (E&O) coverage. 

This policy helps protect your business if you are accused of substandard work, missed deadlines or unfinished projects.

For example, a client claims that a self-employed web developer in Bellevue made a coding error that causes an e-commerce website to crash, resulting in thousands of dollars in lost sales.

Professional liability insurance would help the developer pay to fix the problem or settle out of court. It would also assist with attorney fees, court costs and damages if the client sues.

Commercial Auto insurance

Businesses that own vehicles in Washington state must carry commercial auto insurance that covers between $10,000 and $60,000 in damages.³ 

Commercial auto coverage helps pay for damages if you or an employee has an accident in a company-owned vehicle.

For instance, a worker at an Olympia-based carpet cleaning company is driving a company-owned van back to the office on a rainy night and hits a guardrail on Interstate 5. Commercial auto insurance helps pay for damages to the vehicle up to the policy’s limits. 

If your company occasionally rents vehicles for work or asks employees to use their own cars, you’ll need to add an upgrade called hired and non-owned auto insurance to get comprehensive coverage.

Small business owners in Washington state pay a median of about $41 for their insurance coverage, according to Next Insurance data.

Your company’s coverage costs will differ based on the following considerations:

Risk factors your business routinely encounters. Construction company employees are more likely to face regular hazards than workers in other industries, so these businesses pay a median of $69 per month for coverage in Washington state. Small businesses owners that encounter less risks, like tutoring companies, typically spend $25 each month on insurance packages.

The types of insurance you buy and your policy limits. Choosing minimal insurance coverage or lower policy limits means that you’ll pay less each month for coverage. But the savings might not add up if you have to file an insurance claim because you’re likely to pay more out of pocket.

How many people you employ. Your business’s headcount helps determine your workers’ compensation costs, so it’s key to have accurate employee numbers before you get a businesses insurance package quote.

Start a quote with Next Insurance today to explore coverage options for your business in just a few minutes.

More resources for Washington small businesses and self-employed workers

Check out these links if you would like to learn more about starting a business in Washington:

• Washington Small Business Development Center
• SCORE Greater Seattle
• Office of the Insurance Commissioner, Washington State

Article sources: 

1. U.S. Small Business Administration
2. Washington State Hospital Association 
3. Office of the Insurance Commissioner, Washington State