Question

Which of the following statements is true regarding workers compensation coverage for sole proprietors?

1) It's elective
2) It's not allowed
3) It's only allowed for sole proprietors involved in high risk occupations
4) It's mandatory

Answer 1

Workers compensation coverage for sole proprietors is elective.

Step-by-step explanation:

The correct statement regarding workers compensation coverage for sole proprietors is that it is elective. Workers compensation insurance is typically required for businesses with employees, but sole proprietors have the choice to obtain coverage for themselves.

Unlike employees, sole proprietors are not automatically covered by workers compensation insurance. They have the option to purchase it to protect themselves in the event of work-related injuries. It's important for sole proprietors to carefully consider their needs and the risks associated with their occupation before deciding whether to elect workers compensation coverage.