What distinguishes Washington's workers' compensation system?

Washington's workers' compensation system is characterized by its monopolistic nature, meaning that it does not allow private insurance companies to operate in the provision of workers' compensation coverage. Instead, the state has established a state-run system that provides coverage for work-related injuries and illnesses. This unique approach is designed to protect workers by ensuring that they have access to consistent benefits while also simplifying the process for employers by eliminating the need to navigate multiple private insurance options.

In a monopolistic system, the government controls the rates and benefits, which helps maintain stability and predictability within the workers' compensation landscape. This system contrasts with states that allow private insurers to compete in the market, where policies and benefits can vary significantly.

The other options do not accurately reflect the foundational aspects of Washington's workers' compensation system. For instance, while some states do offer voluntary systems for specific entities or small businesses, Washington's structure is mandatory for most employers. Additionally, independent contractors often do not receive the same protections under workers' compensation laws as traditional employees, but this does not define what is distinguished about the entire system.