California Supplemental (CSE) Practice Exam

Which insurance is required by California state law for architects with employees?

1. General Liability Insurance

2. Professional Liability Insurance

3. Workers Compensation Insurance

4. Property Insurance

The correct answer is: Workers Compensation Insurance

In California, state law mandates that any business with employees, including architectural firms, must carry Workers' Compensation Insurance. This insurance provides essential coverage that protects employees in the event of work-related injuries or illnesses. It ensures that employees receive medical care and compensation for lost wages due to workplace incidents, regardless of fault. This legal requirement helps safeguard both the welfare of workers and the financial assets of employers by limiting potential liabilities from workplace incidents. General Liability Insurance, while important for protecting against claims of bodily injury or property damage, is not required by law specifically for employees. Professional Liability Insurance is crucial for architects as it covers claims of negligence or failure to deliver professional services, but it isn't mandated by state law for employer-employee relations. Similarly, Property Insurance is important for protecting business assets but does not fulfill the legal requirement related to employees’ occupational safety. Thus, Workers' Compensation Insurance is the necessary insurance that architects must have under California law to ensure compliance and protect their employees.