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 key idea is that workers' compensation is tied to having employees. In California, the workers’ comp requirement applies to employers who have workers, not to a sole proprietor with no employees. Since you’re operating solo and don’t have any employees, there’s no legal obligation to carry workers’ compensation insurance. You could choose to purchase it voluntarily for yourself, but it isn’t required to legally run the business.

General liability is commonly needed because clients often require it to cover potential property damage or injuries from your work. Auto liability is important if you drive for business, to cover damages or injuries you may cause in a vehicle used for job sites. Health insurance isn’t mandated by contract or state law for a contractor; it’s a personal benefit, though obtaining coverage is wise for personal health and financial protection.