Contractor License Practice Exam

Who is responsible for paying for workers' compensation insurance?

1. Workers

2. Subcontractors

3. The employer

4. The government

The correct answer is: The employer

The responsibility for paying for workers' compensation insurance falls on the employer. This insurance is designed to provide financial benefits to employees who are injured on the job or become ill due to work-related causes. It covers medical expenses, lost wages, rehabilitation costs, and even death benefits for dependents in the event of a fatal work-related incident. Employers are mandated by law in most jurisdictions to carry workers' compensation insurance to protect their employees and themselves from potential lawsuits related to workplace injuries. By having this insurance, employers demonstrate their commitment to providing a safe working environment and supporting their workers in times of need. The other options do not reflect the legal and practical responsibilities surrounding workers' compensation insurance. While workers benefit from the coverage, they do not pay for it directly. Subcontractors may have their own workers' compensation insurance, but they are not typically responsible for providing coverage for hirees that work under another contractor. The government, on the other hand, does not pay for workers' compensation insurance; instead, it regulates and enforces the laws governing such insurance policies to ensure employers comply with the requirements.