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Risk Class for Workers' Compensation Insurance in Washington

December 8, 2022・2 mins read
Risk Class for Workers' Compensation Insurance in Washington

In the State of Washington, the amount a company pays for workers' compensation insurance depends on the company's risk class and experience factor.

See the Washington State Department of Labor and Industries Site to determine or look up a company's risk class and tax rates.

Risk class in detail

  • Risk classes group companies by the likelihood that someone employed by that company will file a claim for workers' compensation. These classes separate companies with a higher incidence of workplace injuries, e.g., construction companies, from companies with a lower incidence, e.g., software development companies.
  • Risk classes are assigned an identifying code with the format 0000-00, e.g., 5302-00, Software Design & Engineering and Internet Service Providers.
  • Companies in each risk class are assigned the specific base tax rate for each of 4 Washington state funds that pay for workers' compensation claims, which are used (along with the experience factor) to compute a company's Composite Rate, the premium amount paid for each hour worked by an employee in Washington.
  • Rates for each base tax rate are updated each year based on historical claims for businesses in each risk over a 5-year period.
This communication is for informational purposes only; it is not legal, tax or accounting advice; and is not an offer to sell, buy or procure insurance.

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