A bill requiring local governments to carry underinsured coverage for their vehicles to cover injured public employees is scheduled for a hearing this week. AWC has concerns about the bill as it undermines the state’s worker compensation system.

SB 5107 is sponsored by Sen. Matt Boehnke (R–Kennewick). Starting in 2026, it requires local governments to provide underinsured coverage for vehicles owned by the local government and operated by government employees or agents. Coverage must include protection for an employee who is operating or an occupant of the government-owned vehicle that would otherwise be legally entitled to recover damages from an underinsured motorist in the case of damage or injury from an underinsured vehicle, hit and run, or phantom vehicle. The bill does not require such coverage for non-employee third party occupants of the government-owned vehicle.

The bill sets minimum coverage limits of at least $25,000 per person and $50,0000 per accident, and coverage can be provided either through a private insurance carrier or through self-insurance. It also permits local governments to form a joint self-insurance risk pool for the purpose of providing underinsured motorist insurance.

AWC has significant concerns about this bill. The scenario covered by the bill would primarily cover city employees injured during the course of their employment – injuries that are meant to be covered by the state’s workers compensation system. RCW 51.04.010 establishes workers compensation, either through the state system or through a Labor & Industries-approved self-insurance plan, as the exclusive remedy for workers injured in their work. SB 5107 would undermine that system by providing an alternative means of compensation for on-the-job injuries to government employees outside of the workers’ compensation system – a system meant to provide guaranteed, non-fault based relief to injured workers without the need for expensive additional insurance, liability, or legal action. While the bill itself is limited to local government, it seems likely that such coverage would eventually be required of all employers, further undermining workers’ compensation. AWC opposes SB 5107 because of its impact undermining the workers’ compensation system, as well as the additional expense and liability the bill would impose on city governments.

Dates to remember

SB 5107 is scheduled for a hearing in the Senate Local Government Committee on January 20 at 1:30 pm.