Utah Contractor Practice Exam

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Prepare for the Utah Contractor Exam with comprehensive quizzes and study resources. Gain confidence by accessing multiple-choice questions designed to enhance your knowledge and skills for the licensing exam.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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How many employees must an employer have before he must apply for workers compensation insurance?

0
1 or more
2 or more
3 or more

The correct answer is: 1 or more

In Utah, an employer is required to obtain workers' compensation insurance as soon as they have one or more employees. This requirement is put in place to ensure that all workers have access to benefits in case of a work-related injury or illness, regardless of the size of the workforce. Having even a single employee subjects an employer to liability under workers' compensation laws. This coverage protects both the employee and the employer: employees get medical and wage-loss benefits in the event of work-related injuries, while employers are protected from lawsuits related to these injuries. This framework is designed to promote a safer workplace environment and encourage employers to take proactive measures to reduce hazards and prevent injuries. In the context of the other options, it is evident that having zero employees does not create a requirement for workers' compensation insurance, and having two or three employees before needing to apply establishes a threshold that does not align with the actual legal requirements in Utah. Hence, applying for workers’ compensation insurance is mandated with the employment of just one individual.