The average cost of workers’ compensation insurance in Washington will go up about 3.8% in 2025, the Washington State Department of Labor & Industries announced.
Employers and workers together will pay on average roughly $1 per week more for each full-time position effective Jan. 1, 2025. Workers will pay roughly one quarter of the premium, similar to last year, according to L&I.
The 3.8% increase is an average for all industries. The base rate for specific industries could be higher or lower depending on their recent claims history
Each fall, L&I determines workers’ comp rates for the following year by looking at factors including the expected workers’ comp benefits costs, size of the contingency reserve, wage and benefit inflation, operational costs, investment income and other financial indicators.
The increased premiums will bring in slightly less than what L&I expects to pay out for 2025 claims and expenses. The agency will make up the difference by tapping into the workers’ comp contingency reserve.
Most states charge rates as a percentage of payroll, so when employee wages and payrolls go up, more premiums are automatically collected. However, in Washington, employers are charged an hourly rate. When wages go up in, it costs L&I more to provide workers’ comp benefits. Rate increases are one way the state covers the increase in the cost of providing coverage.
L&I workers’ comp insurance covers roughly 2.8 million workers and more than 201,000 employers in Washington.
Topics Trends Workers' Compensation Pricing Trends Washington
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