Important Update: Washington State Workers' Compensation Premium Rates Set to Increase in 2026

What You Need to Know About the Rate Increase

The Washington State Department of Labor & Industries has officially announced an average premium rate increase of 4.9% for workers' compensation coverage effective January 1, 2026. This adjustment reflects ongoing efforts to maintain the financial stability of the state's workers' compensation system while addressing rising medical costs, wage inflation, and other economic factors.

While the exact impact will vary by industry, experience rating, and individual employer history, this increase could mean higher costs for many businesses across Washington. For example:

High-risk industries like construction, manufacturing, and logging may see more significant adjustments.

Employers with strong safety records and effective claims management strategies could mitigate some of these costs through better experience modifiers.

At Risk Finance, we've been tracking these trends closely and are prepared to help you navigate the implications for your organization.

How This Affects Your Business

Rising premium rates can strain budgets, especially for small and mid-sized businesses. However, proactive claims management is key to controlling costs over the long term. Poorly handled claims can lead to higher experience ratings, which in turn amplify future premium increases. That's where our expertise comes in—we specialize in efficient L&I claims processing, dispute resolution, and risk mitigation to help keep your rates as low as possible.

Our services include:

Claims Review and Auditing: Ensuring accuracy and identifying opportunities for cost savings.

Return-to-Work Programs: Getting employees back on the job safely and quickly to reduce time-loss claims.

Training and Compliance Support: Helping you implement best practices to prevent injuries and improve your safety culture.

By partnering with us, many clients have successfully lowered their overall workers' compensation expenses, even in the face of statewide rate hikes.

What Should You Do Next?

Don't wait for the new rates to take effect—start preparing now. Review your current policies, assess your claims history, and consider a free consultation with our team to explore customized strategies for 2026.

Contact us today at 360 438 0880 or info@riskfinance.net to schedule a no-obligation review of your L&I account. We're here to turn this challenge into an opportunity for stronger, more cost-effective risk management.

Stay tuned to our blog for more updates on L&I regulations, safety tips, and industry insights. Together, we can keep your business protected and thriving.

Risk Finance Team: 9/16/2025