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According to California law, what is the minimum workers' compensation insurance coverage requirement for a licensed contractor with employees?

Correct Answer

B) Coverage is required for all employees with no exceptions

California Labor Code Section 3700 requires all employers, including contractors, to provide workers' compensation insurance for all employees. There are no exceptions based on company size, project type, or payroll amount. Even one employee triggers this mandatory requirement.

Answer Options
A
Coverage is optional if the contractor has fewer than 5 employees
B
Coverage is required for all employees with no exceptions
C
Coverage is required only if the annual payroll exceeds $100,000
D
Coverage is only required for employees working on public works projects

Why This Is the Correct Answer

California Labor Code Section 3700 requires all employers, including contractors, to provide workers' compensation insurance for all employees. There are no exceptions based on company size, project type, or payroll amount. Even one employee triggers this mandatory requirement.

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