A company with 25 total employees: 4 in the office, 6 supervising, and the rest in the field. Which type of insurance is required by law?

A company with 25 total employees: 4 in the office, 6 supervising, and the rest in the field. Which type of insurance is required by law?

• A. General liability insurance
• B. Property insurance
• C. Automobile insurance
• D. Workers' compensation insurance

Answer: (D)

In California, workers’ compensation insurance is required for every employer that has employees. It doesn’t matter how many are in the office, supervising, or in the field—the moment you employ people, you must carry workers’ comp. This coverage ensures medical treatment and wage benefits for work-related injuries, regardless of fault. General liability, property, and automobile insurance are important for managing risk, but they aren’t mandated solely by the fact that you have employees. General liability is often needed for contracts and licenses, property insurance protects business assets, and automobile insurance is required for vehicles you use on public roads, but the legal obligation tied to having employees here is workers’ compensation.

In California, workers’ compensation insurance is required for every employer that has employees. It doesn’t matter how many are in the office, supervising, or in the field—the moment you employ people, you must carry workers’ comp. This coverage ensures medical treatment and wage benefits for work-related injuries, regardless of fault.

General liability, property, and automobile insurance are important for managing risk, but they aren’t mandated solely by the fact that you have employees. General liability is often needed for contracts and licenses, property insurance protects business assets, and automobile insurance is required for vehicles you use on public roads, but the legal obligation tied to having employees here is workers’ compensation.