Insurance & LiensQuestion 1479 of 1605
California law makes which type of insurance MANDATORY for any contractor who has employees?
a.General liability insurance
b.Commercial auto insurance
c.Workers' compensation insurance
d.Builder's risk insurance
Explanation
Labor Code §3700 requires every employer, including contractors with employees, to carry workers' compensation insurance (or be lawfully self-insured). CSLB requires proof for licensees with employees. General liability, auto, and builder's risk are commonly required by contract but are not universally mandated by statute.
Law Reference: Labor Code §3700Practice 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)