Under California law, what is the minimum workers' compensation insurance coverage required for a contractor with 8 employees?
Correct Answer
C) No minimum amount specified by law
California does not specify minimum dollar amounts for workers' compensation coverage. The requirement is to provide coverage for all work-related injuries and illnesses as defined by the Workers' Compensation Act.
Why This Is the Correct Answer
California law mandates that employers carry workers' compensation insurance to cover all work-related injuries and illnesses, but the law does not specify a minimum dollar amount of coverage. The requirement is simply to have coverage — the Workers' Compensation Act defines what benefits must be paid, and insurers provide coverage accordingly. Unlike general liability insurance, there is no statutory minimum dollar limit for workers' comp in California.
Why the Other Options Are Wrong
Option A: $500,000 per occurrence
$500,000 per occurrence is not a statutory minimum for workers' compensation in California. This figure might be confused with general liability coverage limits or be a number from another state's requirements.
Option B: $100,000 per occurrence
$100,000 per occurrence is not a statutory minimum for workers' compensation in California. Again, this might be confused with other types of liability coverage minimums.
Option D: $1,000,000 per occurrence
$1,000,000 per occurrence is a common general liability limit, not a workers' compensation requirement. Workers' compensation is a no-fault system that pays defined statutory benefits — it is not structured as a per-occurrence liability policy with a dollar cap.
Memory Technique
Workers' comp in California = 'Have it, but no dollar minimum.' The law says you MUST have workers' comp (or qualify for self-insurance), but doesn't say $100K or $500K minimum. The insurer pays what the Workers' Comp Act requires — unlimited medical care, wage replacement, etc. — not a capped dollar amount.
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A construction company has 15 employees working on a project. One employee suffers a work-related injury. Under California law, what is the primary difference between Cal/OSHA and federal OSHA jurisdiction?
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