Washington Avoid Liability for Your Subcontractor's Unpaid Workers' Comp Premiums are designed to protect contractors from the potentially severe consequences of having a subcontractor fail to pay its workers' compensation premiums. This is done by requiring contractors to enter into agreements with subcontractors that include provisions that ensure that the subcontractor pays its workers' compensation premiums in full when due. Washington's state has enacted legislation that requires all contractors to enter into such agreements with their subcontractors and provides a penalty if the contractor fails to do so. There are two types of Washington Avoid Liability for Your Subcontractor's Unpaid Workers' Comp Premiums, both of which require the contractor to enter into an agreement with the subcontractor that outlines the specific requirements for payment of the workers' compensation premiums. The first type is known as the “Security Agreement”, which requires the contractor to obtain a security interest in the subcontractor’s property or assets in order to secure payment of the premiums. The second type is known as the “Liability Agreement”, which requires the contractor to agree to be held liable for the unpaid workers' compensation premiums if the subcontractor fails to pay them. Both types of agreements are designed to protect contractors from the financial risks associated with having a subcontractor fail to pay their workers' compensation premiums, but they do not provide any protections for the subcontractor’s employees. As such, contractors should always ensure that their subcontractors comply with all applicable workers' compensation laws and pay their premiums in full when due.