Insurance & LiensQuestion 1537 of 1605
A sole-owner contractor with no employees wants to avoid carrying workers' compensation insurance. Generally, the contractor may:
a.Never avoid it under any circumstances
b.Simply stop paying premiums with no filing
c.File a valid workers' compensation exemption certificate with the CSLB, unless the classification requires coverage regardless
d.Only avoid it by dissolving the business
Explanation
Under Business & Professions Code §7125, a licensee with no employees may certify an exemption from workers' compensation. However, certain classifications (such as C-8, C-10, C-20, C-22, D-49) must carry coverage even without employees, so the exemption is not available to them.
Law Reference: Bus. & Prof. Code §7125Practice all 1605 questions free — no signup required.
Related questions on this topic
- On a private work of improvement, when a valid payment bond has been recorded, an unpaid subcontractor may:
- A notice of cessation was recorded after a 30-day work stoppage. This recording affects lien deadlines by:
- 'Completed operations' coverage under a CGL policy is important to contractors because it covers:
- To keep a mechanics lien alive beyond 90 days without immediately filing suit, a claimant and owner may agree to and record an:
- Which best explains why a general contractor requires each subcontractor to carry its OWN workers' compensation insurance?
- The 125% bond required to accompany a stop payment notice served on a construction LENDER exists to:
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)