Utah Contractor Practice Exam

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Study for the Utah Contractor Exam with comprehensive quizzes and resources designed to help you master the content. Engage with flashcards and multiple-choice questions that equip you with the knowledge needed to pass the exam!

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Are businesses without employees required to carry workers' compensation coverage?

The above statement is correct
The above statement is incorrect
Only applies to out of state employers
None of the above

The correct answer is: The above statement is correct

In Utah, businesses without employees are generally not required to carry workers' compensation coverage. This is because workers' compensation is designed to provide benefits to employees who suffer work-related injuries or illnesses. If a business does not have any employees, there are no workers to cover, making the need for such insurance unnecessary. However, even if a business is classified as having no employees, the owner might still choose to obtain coverage for personal protection or in case they hire employees in the future. It's essential for business owners to understand their obligations regarding workers' compensation insurance based on their specific circumstances. Options indicating that the statement is incorrect or that it only applies to out-of-state employers do not align with the general rules governing workers' compensation coverage in Utah.