Towing is one of the most dangerous jobs in the country, and workers' compensation is where that risk shows up on your books. Operators work beside moving traffic, handle heavy chains and winch cable, climb on and off decks in rain and ice, and lift and pull in awkward positions. A single serious injury can mean months of lost time and a higher premium for years. This guide explains how workers' compensation works for towing companies, with a focus on Washington's state-run system, and what you can do to prevent injuries and manage claims well.
Why towing injuries are so costly
A NIOSH study of federal fatality data found that the towing industry's death rate from 2011 to 2016 was more than 15 times the rate for all private industry. Motor vehicle incidents were the leading cause, followed by contact with objects and equipment, and many of the motor vehicle deaths involved workers on the roadside being struck by passing vehicles. More than half of the deaths occurred at companies with 10 or fewer employees, which describes most tow operators.
Non-fatal injuries follow the same pattern. The tasks that generate most towing claims are familiar to any operator:
Struck-by incidents
Passing traffic at roadside scenes, and vehicles that roll or shift during hookup.
Winching and rigging
Cable and chain failures, pinch points, and loads that move unexpectedly. See winching and recovery operations.
Strains and sprains
Pulling chains and dollies, lifting wheel-lift arms, and working under vehicles on the ground.
Slips and falls
Climbing onto rollback decks and truck beds, often on wet or icy surfaces and at night.
How workers' compensation works in Washington
Washington is different from most states. According to the Department of Labor & Industries (L&I), employers have two options: buy coverage from the L&I state fund or become a certified self-insured employer. Washington does not allow private workers' compensation coverage, so a towing company cannot buy this coverage from a private insurance company. Premiums are based on your industry and your workers' hours.
Stop gap employers liability
Because the state fund provides workers' compensation benefits only, it does not include employer's liability insurance. As The Hartford explains, Washington employers who want that protection buy it as stop gap coverage, usually added to a general liability policy from a private insurer. Stop gap typically responds when an injured employee or a family member brings a lawsuit against the employer outside the workers' compensation system. Many tow operators do not have it until a broker asks.
Check your classifications and your contractors
L&I premium depends on how your work is classified. Office staff, dispatch and drivers may fall under different classifications, and errors can go either way: overpaying, or owing back premium after an audit. Also confirm whether each person who drives for you is legally an employee or an independent contractor. L&I publishes guidance on that test, and the answer affects who must be covered.
Operating outside Washington
Most other states let employers buy workers' compensation from private insurers. If your drivers regularly work across state lines, or you operate a location in another state, talk with your broker and L&I about how injuries outside Washington would be handled before a claim happens.
Prevention: the written program Washington requires
Washington's general safety rules, in chapter 296-800 WAC, require every employer to develop a formal, written accident prevention program and to make sure it is effective in practice. The same rules require first-aid trained personnel to be available, first-aid supplies to be readily available, and emergency washing facilities to be functional and readily accessible where they are needed.
Employers also need safety meetings or a safety committee. According to L&I, an employer with 11 or more employees on the same shift at the same location must have a safety committee; smaller employers may hold safety meetings instead. For a towing company, a written program should cover at least:
- Roadside scene safety: truck positioning, lighting, cones or flares, and where the operator stands. Washington's move over law, RCW 46.61.212, requires approaching drivers to move over or slow down for tow trucks with flashing lights, according to the Washington State Patrol. Train operators not to rely on it.
- Winching and rigging: inspecting cable, hooks and chains, keeping people out of the line of a loaded cable, and rated capacities.
- High-visibility apparel and PPE: vests or jackets, gloves, eye protection and footwear suited to wet and icy surfaces.
- Lifting and body mechanics: using dollies, go-jacks and power equipment instead of muscle wherever possible.
- Electric vehicle hazards: damaged high-voltage batteries need special handling. See towing electric vehicles.
- Night and weather operations: see night operations and roadside safety.
New operators are at the highest risk. A structured onboarding period with a senior operator is one of the most effective controls you have; our new tow operator training article lays out a plan.
When an injury happens
How you handle the first hours and days after an injury has a real effect on cost. A practical sequence:
- Get care first. Call 911 for serious injuries. For minor injuries, make sure the worker sees a provider promptly.
- Secure the scene and preserve facts. Photos, equipment involved, witnesses, weather and lighting.
- Report the claim quickly. Prompt reporting helps the worker get benefits sooner and keeps the claim on track. See injury reporting best practices.
- Investigate the cause and fix it, so the same injury does not happen to the next operator.
- Stay in contact with the injured worker throughout recovery.
Return to work and Stay at Work
Bringing an injured operator back in a light-duty role, such as dispatch, yard work, impound paperwork or customer releases, is good for the worker and usually reduces claim cost. Washington supports this directly. Through L&I's Stay at Work program, state fund employers can be reimbursed for part of the cost of light-duty work:
| Stay at Work item | Injury before 1/1/2025 | Injury on or after 1/1/2025 |
|---|---|---|
| Wage reimbursement | 50% of gross base wages | 50% of gross base wages |
| Maximum days | 66 | 120 |
| Maximum wage reimbursement | $10,000 | $25,000 |
| Tools and equipment | Up to $2,500 | Up to $5,000 |
| Training | Up to $1,000 | Up to $2,000 |
| Clothing | Up to $400 | Up to $1,000 |
Tools, equipment, training and clothing qualify only if they are needed for the light-duty job and bought after the job was offered. Check L&I's current rules before you apply. Our articles on return-to-work programs and modified duty explain how to design the jobs.
Claims history and your premium
Your claims history affects what you pay for workers' compensation over the following years, in Washington and elsewhere. Fewer and less severe claims, and claims that close quickly because workers return to work, generally help. Our guide to the experience modification rate explains the concept. Review your claims with L&I or your carrier periodically, and question anything that looks wrong.
When to call a broker
Call us if you are adding employees, opening a yard in another state, using owner-operators, or unsure whether you carry stop gap coverage. We can review how your workers' compensation, stop gap, auto and general liability fit together, and point out gaps before a claim does. See our workers' compensation and tow truck insurance pages for more.
Sources
- Washington L&I — Insurance requirements
- Washington L&I — Stay at Work
- Washington L&I — Safety meetings and committees
- Washington State Legislature — Chapter 296-800 WAC, Safety and health core rules
- The Hartford — Washington workers' compensation (stop gap coverage)
- CDC/NIOSH — Research Rounds: towing industry fatality findings
- Washington State Patrol — Move Over, Slow Down emphasis campaign