EmploymentQuestion 1005 of 1605
The single most effective way for a general contractor to avoid becoming liable for a subcontractor's injured workers is to:
a.Pay the subcontractor in cash to avoid a paper trail
b.Verify that the sub is properly licensed AND carries its own current workers' compensation insurance
c.Require the subcontractor to sign a liability waiver
d.Only hire subs who are sole proprietors with no crew
Explanation
Because an unlicensed sub's workers become the hirer's employees, and because a licensed sub with employees must carry its own coverage, the GC should confirm both a valid license and current workers' compensation coverage before hiring. Obtaining a certificate of insurance protects the GC from inheriting the sub's uninsured liability.
Law Reference: Labor Code §2750.5; Bus. & Prof. Code §7125Practice all 1605 questions free — no signup required.
Related questions on this topic
- As of January 1, 2026, under the phase-in enacted by SB 216, which licensed contractors must carry workers' compensation insurance?
- What happens to a contractor's license if the required workers' compensation coverage lapses and no exemption is on file?
- A licensed general contractor hires an unlicensed subcontractor who brings his own crew but carries no workers' compensation insurance. If one of that crew is injured, who is most likely liable to provide workers' compensation benefits?
- After an employee reports a work-related injury, how quickly must the employer generally provide the employee with a workers' compensation claim form (DWC-1)?
- Every California employer subject to workers' compensation law must post which notice in a conspicuous location at the worksite?
- For an injury to be covered by workers' compensation, it generally must arise:
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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)