Utah General Contractors - Business and Law Practice Exam

Who is responsible for paying workers' compensation insurance?

1. The employee

2. The subcontractor

3. The employer

4. The project owner

The correct answer is: The employer

The responsibility for paying workers' compensation insurance falls to the employer. In Utah, as in many other states, it is the employer's obligation to provide workers' compensation coverage for their employees. This insurance serves to protect workers in case of job-related injuries or illnesses, ensuring they receive medical care and compensation for lost wages as required by law. This arrangement incentivizes employers to maintain a safe working environment since they are responsible for the costs associated with workers' compensation claims. Employees do not pay for their own workers' compensation; rather, they are beneficiaries of the coverage provided by their employers. Subcontractors may have their own obligations, but they are typically considered independent entities responsible for their own employees' coverage, rather than having the overarching responsibility in a project. Project owners generally do not carry this obligation unless they also employ workers directly in relation to the project.