For a solo contractor operating without employees, which insurance is not required?

For a solo contractor operating without employees, which insurance is not required?

• A. General liability
• B. Workers' compensation
• C. Health insurance
• D. Auto liability

Answer: (B)

The thing being tested is how workers’ compensation rules apply to a solo contractor. In California, workers’ compensation insurance is required for employers who have employees. A sole proprietor operating without any employees isn’t considered an employer and therefore isn’t required to carry workers’ compensation for themselves. You can choose to obtain it to protect yourself if you wish, but it isn’t mandated unless you hire workers. General liability, health insurance, and auto liability have different requirements. General liability is commonly carried and often required by clients to cover third-party claims, but it isn’t a universal legal obligation. Health insurance is a personal benefit and not a business requirement. Auto liability is legally required for anyone driving on public roads, including for business use, so that coverage is typically mandatory. So the insurance not required for a solo contractor with no employees is workers’ compensation.

The thing being tested is how workers’ compensation rules apply to a solo contractor. In California, workers’ compensation insurance is required for employers who have employees. A sole proprietor operating without any employees isn’t considered an employer and therefore isn’t required to carry workers’ compensation for themselves. You can choose to obtain it to protect yourself if you wish, but it isn’t mandated unless you hire workers.

General liability, health insurance, and auto liability have different requirements. General liability is commonly carried and often required by clients to cover third-party claims, but it isn’t a universal legal obligation. Health insurance is a personal benefit and not a business requirement. Auto liability is legally required for anyone driving on public roads, including for business use, so that coverage is typically mandatory.

So the insurance not required for a solo contractor with no employees is workers’ compensation.