To register as a contractor in Washington, L&I requires a continuous contractor surety bond of $30,000 for general contractors or $15,000 for specialty contractors, plus general liability insurance of $200,000 public liability and $50,000 property damage, or $250,000 combined single limit. L&I must be listed as certificate holder, and the bond and policy must use your exact business name (WA L&I). This applies to contractors in Wenatchee, East Wenatchee, Cashmere, Chelan and across the state.
By the team at Blue Horizon Insurance & Financial Services, an independent local agency at 12 S Wenatchee Ave, Wenatchee.
Need a certificate of liability insurance for your L&I registration? We shop many insurance companies for small contractors. Start here:
https://www.bhifs.com/insurance-quotes.html
Or call 509-293-7500.
What does L&I require to register a contractor in Washington?
According to the Washington State Department of Labor & Industries, registering takes these pieces:
- A business license and UBI number set up for your business.
- A surety bond (or an assignment of savings): $30,000 for general contractors, $15,000 for specialty contractors. These amounts went up on July 1, 2024 and are set in RCW 18.27.040.
- General liability insurance of at least $200,000 public liability and $50,000 property damage, or a $250,000 combined single limit. The statute is RCW 18.27.050.
- The application and fee. L&I lists a $150 application fee.
Fees and amounts can change, so check the L&I page before you file.
What’s the difference between the bond and the liability insurance?
Contractors mix these up all the time, and they do very different jobs:
Contractor surety bond
The bond names the State of Washington as obligee. It protects the public, such as customers or suppliers, if a contractor doesn’t meet certain obligations. It isn’t insurance for your business. If the surety pays a claim, the surety can generally seek repayment from you. The bond is continuous. If it is cancelled, your registration is automatically suspended until a new bond is filed (RCW 18.27.040).
General liability insurance
General liability is insurance for your business. Depending on the policy terms, it can respond when your work causes injury to someone else or damage to their property, for example a customer who trips over materials or a water line damaged during a remodel. If the policy expires or is cancelled, your registration is also automatically suspended (RCW 18.27.050).
Is the L&I minimum enough for your jobs?
The L&I amounts are what you need to register. They aren’t the same as what a general contractor, property manager or commercial customer may require before you can start a job. Here’s what we see often:
- GC or customer contracts often ask for higher per-occurrence and aggregate limits, an additional insured endorsement, or a waiver of subrogation. Read the insurance section of a contract before you sign it.
- Certificate requests come fast. In spring and summer building season around the Wenatchee Valley and Lake Chelan, a contractor may need a certificate the same day to get on a site. Having your agent’s contact handy matters.
- Your truck isn’t covered by general liability. A pickup or van used for the business usually needs commercial auto coverage. A personal auto policy may not cover business use, depending on its terms.
- Tools and equipment are usually a separate coverage (often called inland marine or tools and equipment).
Also note that Washington workers’ compensation for employees runs through L&I itself, not through a private policy, so it is a separate step from your liability insurance.
What do small contractors in Chelan and Douglas Counties ask us?
- “Can you list L&I as certificate holder for me?” Yes. That is a standard request when we place a policy, and the name on the certificate must match your business name exactly.
- “I’m a specialty contractor, like a painter, roofer or flooring installer. Is my bond smaller?” Specialty contractors file a $15,000 bond instead of $30,000. The liability insurance minimum is the same.
- “Can I get liability and commercial auto from the same place?” As an independent agency, we can shop both. That includes a Business Owners Policy (BOP) through Progressive for eligible contractors, which can package liability and property.
For more, see Commercial Insurance for Central Washington Contractors and Does Your Wenatchee Business Qualify for a BOP?, or visit our commercial insurance page.
How to check a contractor’s registration, or your own
L&I’s Verify a Contractor, Tradesperson or Business tool shows whether a registration, bond and insurance are on file and current. Homeowners can use it before they hire. Contractors can use it before renewal to make sure their bond and insurance information is up to date.
Why work with a local independent agency?
Blue Horizon Insurance is an independent agency. We are not the insurance company. We shop many insurance companies for small contractors and explain the options in plain English. We have been a Ramsey Trusted provider (a Dave Ramsey endorsed local provider) for more than 10 years, and our office is in downtown Wenatchee.
FAQ: Washington contractor bond and insurance
How much is the contractor bond in Washington?
$30,000 for general contractors and $15,000 for specialty contractors (RCW 18.27.040).
How much liability insurance does L&I require?
$200,000 public liability and $50,000 property damage, or $250,000 combined single limit (L&I).
What happens if my insurance lapses?
Your contractor registration is automatically suspended until new coverage is filed and approved (RCW 18.27.050).
Does the bond protect my business?
No. The bond protects the public and names the State as obligee. Liability insurance is what protects your business, subject to its terms.
Get your contractor insurance shopped locally
Tell us your trade, your vehicles and what your contracts require. We’ll shop many insurance companies and walk you through the options.
https://www.bhifs.com/insurance-quotes.html
Or call 509-293-7500. Blue Horizon Insurance & Financial Services, 12 S Wenatchee Ave, Wenatchee, WA 98801.
This article is general information, not legal advice or a coverage decision. Coverage depends on your policy terms and the insurance company’s underwriting.
