Business & LicensingQuestion 1443 of 1605
A licensee with employees must maintain what type of insurance to keep the license valid?
a.Auto insurance only
b.Workers' compensation insurance
c.Life insurance
d.Renter's insurance
Explanation
Under B&P Code section 7125, a licensee with employees must carry workers' compensation insurance and file a certificate with the CSLB. Failure to maintain required coverage results in automatic suspension of the license.
Law Reference: B&P Code §7125Practice all 1605 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)