Utah Contractor Practice Exam 2026 - Free Contractor License Practice Questions and Study Guide

For a small contractor who has no employees and operates from home, workers' compensation insurance is generally unnecessary. This type of insurance is designed to provide coverage for medical expenses and lost wages for employees who may suffer work-related injuries or illnesses. Since this contractor does not have any employees, there is no requirement or risk that necessitates this insurance.

In contrast, property damage, general liability, and commercial vehicle insurance all serve significant purposes. Property damage insurance protects against losses incurred to tools and equipment, general liability covers claims related to property damage or bodily injury that might occur as a result of the contractor's business activities, and commercial vehicle insurance is essential if the contractor uses a vehicle for work purposes. Therefore, while these other types are important for protecting different facets of a contractor's business, workers' compensation is not applicable in this scenario.