Insurance & LiensQuestion 1498 of 1605
If a contractor illegally fails to carry required workers' compensation insurance and an employee is injured, the employee may:
a.Only collect from the CSLB Recovery Fund
b.Be limited strictly to the workers' compensation schedule
c.Sue the employer in civil court where the employer loses certain defenses, and the employer faces penalties
d.Recover nothing because coverage was absent
Explanation
Under Labor Code §3706 and §3708, an uninsured employer may be sued in civil court, and the law presumes the injury was caused by the employer's negligence, stripping common defenses. The employer also faces stop orders and penalties. Illegally uninsured employers face far greater exposure.
Law Reference: Labor Code §3706Practice all 1605 questions free — no signup required.
Related questions on this topic
- An owner or contractor who wants to remove a recorded mechanics lien from title while still disputing the claim may record a:
- The 20-day period for serving a Preliminary Notice generally begins to run from the date the claimant:
- Which of the following is the BEST reason a general contractor requires subcontractors to name it as an additional insured and provide certificates of insurance?
- What is a direct consequence for a licensed contractor whose required workers' compensation insurance lapses?
- A material supplier who furnishes materials to a subcontractor (not to the owner directly) preserves its mechanics lien rights by serving a preliminary notice on:
- A 'performance bond' on a construction project primarily guarantees to the obligee that:
Last reviewed: · editorial process
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)