District of Columbia small business insurance requirements: workers' compensation, 25/50/10 auto limits and the basic business license

Washington, DC: what the District requires of a small business

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In the District of Columbia, an employer with one or more employees must carry workers' compensation insurance or be approved to self-insure by the Office of Workers' Compensation, with fines of up to $10,000 for going without; registered vehicles need at least $25,000 per person, $50,000 per accident and $10,000 property damage liability plus uninsured motorist coverage; and most businesses need a Basic Business License from the Department of Licensing and Consumer Protection before operating.

Reviewed by CoverMatch licensed agents, Licensed property & casualty agents · Reviewed Oct 11, 2026 Updated Oct 30, 2026

District of Columbia rules with sources
Topic	The rule in District of Columbia	Source
Workers' compensation	An employer with one or more employees in the District must secure workers' compensation through an insurer licensed in DC or as a self-insurer approved by the Office of Workers' Compensation. Sole proprietors, casual workers and unpaid volunteers are outside the requirement; household employers are covered once domestic workers reach 240 hours in a calendar quarter.	D.C. Code § 32-1501 et seq. (Workers' Compensation Act of 1979); DOES Office of Workers' Compensation — Employer coverage
Penalty for being uninsured	An employer that fails to secure coverage can be fined up to $10,000 and is liable for the injured worker's benefits; injuries must be reported to the Office on Form 8 DCWC within ten days.	D.C. Code § 32-1534; DOES Office of Workers' Compensation — Employer brochure
Auto liability minimums	Bodily injury $25,000 per person / $50,000 per accident and property damage $10,000, plus uninsured motorist coverage of $25,000 / $50,000 bodily injury and $5,000 property damage; personal injury protection must be offered and can be declined.	D.C. Code § 31-2406 and § 31-2404; DC Department of Motor Vehicles — Insurance requirements
Basic Business License	Most businesses operating in the District need a Basic Business License in the right endorsement category from the Department of Licensing and Consumer Protection, with a Certificate of Occupancy or Home Occupation Permit and a Clean Hands certification, before opening and at each renewal.	D.C. Code § 47-2851.01 et seq.; DC Department of Licensing and Consumer Protection — Basic Business License

Topic

The rule in District of Columbia

Source

Workers' compensation

An employer with one or more employees in the District must secure workers' compensation through an insurer licensed in DC or as a self-insurer approved by the Office of Workers' Compensation. Sole proprietors, casual workers and unpaid volunteers are outside the requirement; household employers are covered once domestic workers reach 240 hours in a calendar quarter.

D.C. Code § 32-1501 et seq. (Workers' Compensation Act of 1979); DOES Office of Workers' Compensation — Employer coverage

Penalty for being uninsured

An employer that fails to secure coverage can be fined up to $10,000 and is liable for the injured worker's benefits; injuries must be reported to the Office on Form 8 DCWC within ten days.

D.C. Code § 32-1534; DOES Office of Workers' Compensation — Employer brochure

Auto liability minimums

Bodily injury $25,000 per person / $50,000 per accident and property damage $10,000, plus uninsured motorist coverage of $25,000 / $50,000 bodily injury and $5,000 property damage; personal injury protection must be offered and can be declined.

D.C. Code § 31-2406 and § 31-2404; DC Department of Motor Vehicles — Insurance requirements

Basic Business License

Most businesses operating in the District need a Basic Business License in the right endorsement category from the Department of Licensing and Consumer Protection, with a Certificate of Occupancy or Home Occupation Permit and a Clean Hands certification, before opening and at each renewal.

D.C. Code § 47-2851.01 et seq.; DC Department of Licensing and Consumer Protection — Basic Business License

Workers' compensation in the District

The District of Columbia's Office of Workers' Compensation, within the Department of Employment Services, administers the Act. Coverage starts with the first employee, part-time or full-time, and the employer, not the worker, chooses between an insurer licensed in DC and approved self-insurance. Household employers come under the Act once domestic workers reach 240 hours in a quarter. The Office can fine an uninsured employer up to $10,000 and the employer remains liable for benefits.

Auto liability in the District

DC's minimum is 25/50/10 liability with uninsured motorist coverage of 25/50/5 attached to every policy. Personal injury protection is offered rather than required. Business vehicles registered in the District are usually written at a $1M combined single limit, which is what delivery platforms, property managers and the federal agencies that contract with small firms ask for.

Licensing in the District

The Basic Business License is the District's general operating license, issued by endorsement category; a restaurant, a general contractor and a home-based consultancy each take a different endorsement. Some categories, notably home improvement and general contracting, must show a bond and insurance to the licensing board before the license issues. Keep the license, the Certificate of Occupancy and the Clean Hands certification current, because renewals are refused without them.

How CoverMatch uses these rules

A District business in the wallet is checked against these rules: workers' compensation once an employee is reported, the 25/50/10 floor and uninsured motorist coverage on scheduled vehicles, and the bond and insurance evidence for license categories that require them. Each rule links to its source, and a licensed agent reviews this page before it publishes and whenever the rules change.

Sources

Questions people actually ask

My DC consultancy has one part-time assistant. Is workers' compensation required?

Yes. The District counts coverage from one employee, part-time included. Only the sole proprietor, casual workers and unpaid volunteers fall outside it.

Does the Basic Business License require proof of insurance?

The license itself checks occupancy, taxes and the endorsement category rather than insurance, but several categories, for example home improvement and general contractors, must show a bond and insurance to the licensing board, and landlords typically require a certificate for the premises.

Are DC auto limits enough for a delivery van?

They are the legal floor. Vans used for delivery or platform work are almost always written at a $1M combined single limit because platforms and clients require it and the minimum would not cover a serious crash.

By business type in District of Columbia