Best Small Business Insurance in Washington

The Hartford earns our top recommendation for Washington small business insurance, ranking first in affordability and financial stability. It also offers comprehensive coverage with reliable customer service. NEXT and Simply Business also provide strong options for small business owners throughout the state.

Note: This data represents a small business with 2 employees, $150,000 in payroll and $300,000 in annual revenue. All scores were calculated for four of the most common coverage types in the industry across 79 industries in the United States.

Monthly business insurance costs in Washington range from $88 for professional liability to $167 for business owner's policies. Industry and risk factors drive these differences. Average rates for the four most common coverage types:

• General Liability Cost: $118 monthly or $1,413 annually
• Workers' Comp Cost: Data not available for Washington state
• Professional Liability (E&O) Cost: $88 per month or $1,061 annually
• Business Owners Policy (BOP) Cost: $167 monthly or $2,007 annually

Note: We analyzed rates for your two-employee business across 79 industries, focusing on general liability, professional liability, workers' compensation and business owner's policies. Our Washington research covers the companies we surveyed and won't include every rate available to your specific business.

Business insurance costs in Washington depend on your industry and coverage types, ranging from $19 to $1,534 monthly. Compare costs for your specific coverage needs and industry below:

Note: We analyzed rates for your two-employee business across 79 industries, focusing on general liability, professional liability, workers' compensation and business owner's policies. Our Washington research covers the companies we surveyed and won't include every rate available to your specific business.

Below we've summarized business insurance cost factors that affect your premium, specific to Washington:

• State-Run Workers' Comp with No Competitive Pricing: Washington requires you to buy workers' compensation through the state fund. You can't shop around for lower rates from private insurers. L&I increased rates 3.8% for 2025, costing about $1 more per employee per week. You'll also need separate employer's liability coverage since the state fund doesn't include it, adding another expense most states don't require.
• Minimum Wage Increases Insurance Costs: Washington's $16.66/hour minimum wage is the highest in the nation and directly increases your workers' comp premiums since the state calculates them per hour worked. Seattle businesses pay even more at $20.76/hour. Higher wages also increase your general liability exposure when customers get injured, as medical and legal costs scale with employee earnings. Every wage increase triggers higher insurance costs across your operation.
• Earthquake Risk Raises Property Insurance Premiums: Businesses in Seattle, Tacoma and Puget Sound areas pay more for property insurance. Scientists project an 85% chance of a magnitude 6.5+ earthquake in the region within 50 years from the Cascadia Subduction Zone. Insurers charge higher premiums to cover buildings, inventory and equipment in Western Washington due to this seismic risk. Earthquake coverage typically requires a separate policy with high deductibles.
• Flood Insurance Required in Many Business Locations: All 39 Washington counties have received presidential disaster declarations for flooding, costing the state $150 million annually. If your business sits near rivers, Puget Sound or coastal areas, lenders often require flood insurance. Standard policies exclude flood damage, forcing you to buy separate coverage capped at $500,000 for your building and $500,000 for contents. This leaves you underinsured if you carry significant inventory or equipment.
• Mandatory Paid Leave Premiums for Businesses with Employees: If you employ 50 or more people, you'll pay 28.48% of a 0.92% payroll tax for Washington's Paid Family and Medical Leave program on wages up to $176,100 per employee. Starting in 2026, businesses with 25 or more employees must provide job protection during employee leave, increasing costs when staff take extended time off. Even businesses under 50 employees must collect and remit the employee portion of this premium quarterly.

Compare quotes from multiple Washington insurers to find lower rates for your business. Request quotes with matching coverage levels so you can accurately compare costs across companies. Use MoneyGeek's quote tool below to connect with affordable options.

Washington mandates workers' compensation through a state-run monopoly and requires commercial auto liability for business vehicles. Contractors need surety bonds, and businesses with employees must carry unemployment insurance.

Washington business insurance isn't heavily regulated, so you can pick coverage that fits your specific needs. We've analyzed what works best for the major industries driving the state's economy.

Getting business insurance in Washington means navigating the state-run workers' comp monopoly while shopping competitively for other coverage. These steps help you avoid overpaying while meeting legal requirements.

The Hartford, NEXT and Simply Business offer strong options for Washington businesses, but your choice depends on whether you need earthquake coverage in Western Washington or wildfire protection in the east. Compare how each insurer handles L&I coordination for workers' comp claims and look for safety discounts that offset the state's high minimum wage costs.

Washington business owners juggle state-run workers' comp requirements, high minimum wages and earthquake risks. We answer common questions below:

Small business owners in Washington need reliable coverage that protects their operations without breaking their budgets. We designed our methodology to help Washington entrepreneurs navigate challenges like hurricane risks and the state's optional workers' compensation laws.

We studied thousands of quotes from 79 industries across four coverage types for a two-employee firm with $300,000 annual revenue and $150,000 payroll. All policies included $1 million per occurrence and $2 million total per year, with BOPs adding $5,000 business property coverage.

• Affordability (50% of score): We compared company rates across all coverage types to identify the most cost-effective options for small businesses that need comprehensive financial protection without overpaying.
• Customer experience (30% of score): We analyzed J.D. Power satisfaction ratings, NAIC complaint data, online review sites and independent agency feedback to assess real-world service quality when you need claims handled quickly.
• Coverage options (15% of score): We evaluated the breadth of coverage types, policy limits and add-on options available to accommodate growing businesses and Washington's diverse industry needs.
• Financial strength (5% of score): We reviewed AM Best ratings, Moody's assessments and company financial reports to ensure insurers can reliably pay claims, especially important given Washington's frequent weather disasters.

This approach helps Washington small business owners compare insurers on what matters most: affordable premiums, reliable service, adequate coverage and financial stability.