Washington Counties Face Exploding Liability Costs, New WSAC White Paper Shows

Olympia, WA — Liability costs are rising rapidly for Washington counties, putting essential services and the public at risk.

The Washington State Association of Counties (WSAC) released the white paper — Under Pressure: The Liability Plight for Washington Counties — to show how decades of court decisions have pushed county liability and budgets far beyond the Legislature’s original intent. 

Beginning in the 1960s, there was a bipartisan effort to ensure fair compensation for injured residents. However, the report shows that when lawmakers also waived sovereign immunity, it has since created “significant, costly unintended consequences.”  Court rulings such as Sofie v. Fibreboard Corp., Norg v. City of Seattle, and Essex v. Grant County now let people sue counties in more situations and seek larger payouts, putting more pressure on local budgets.

“Washington counties are quietly staring down insolvency, and the breaking point has arrived. Every single dollar taken from local budgets to fund massive, unfair litigation payouts is a dollar stripped away from law enforcement, the justice system, and health and human services. This isn’t a legal debate; it’s a fiscal emergency that is harming public safety,” said Derek Young, WSAC Executive Director.

The white paper highlights several trends that are straining budgets, including: 

• Claims submitted to the Washington Counties Risk Pool have increased by more than 60% since 2021. 
• Counties now face self-insured retention requirements that have jumped 4,000% since 2018 — from $100,000 to $4 million per claim. 
• Liability insurance premiums have climbed more than 380% in the same period. 
• Some county activities are now uninsurable. 

“The current system has turned taxpayers into an insurer for the misconduct of others. County budgets can’t continue to absorb these costs. We need a fair, sustainable system that protects residents and keeps essential services running,” said Young.

Small counties, with the fewest resources, face the greatest proportional risk. Rising costs threaten mandated services such as public safety, roads, public health, elections, and courts.

The white paper outlines reform options for lawmakers to consider, including:

• Strengthening sovereign immunity.
• Damage caps through a constitutional amendment.
• Reforming joint and several liability rules.
• Creating an alternative tribunal process modeled on Ohio’s Court of Claims.

The report emphasizes that accountability must remain intact. “Counties and other local governments should not escape accountability for genuine wrongdoing,” it states. “But we need a system that recognizes the unique nature of mandated public services, provides predictable and sustainable cost structures, and ensures that taxpayer resources are used to serve communities rather than to fund excessive or unpredictable litigation.”

WSAC leaders say the Legislature acted in 1981 and 1986 when rising costs demanded action. They argue the time has come again.

"Lawmakers are forcing Washington counties into an impossible, dangerous corner: either we pay off out-of-control litigation, or we keep our jails open and our roads safe. The status quo is fundamentally broken and unsustainable. Just as the Legislature stepped up to stop this crisis in the 1980s, today's leaders must act immediately before the weight of these soaring costs completely bankrupts local governments," said Young.

White Paper: https://wsac.org/wp-content/uploads/2026/07/2026_wsac_liability_plight_for_washington_counties.pdf

Media Contact:

Mitch Netzer
Director of Communications and Business Development
mnetzer@wsac.org