What type of insurance is mandatory for contractors who employ workers?

Workers' compensation insurance is mandatory for contractors who employ workers in California to cover medical expenses and lost wages for employees who are injured on the job. This insurance protects both the employer and the employees; it ensures that injured workers receive the necessary support without resorting to litigation against their employer. In California, the law requires most employers with one or more employees to carry workers' compensation insurance to maintain compliance with state regulations.

General liability insurance, while important for contractors to protect against claims of bodily injury or property damage that may occur during their work, is not mandated by law for contractors with employees. Health insurance is a benefit that can be provided by employers but is not required by law. Property insurance is relevant for protecting physical assets but does not address the needs of employees in the case of work-related injuries. Thus, the necessity of workers' compensation insurance makes it the correct answer in this context.