What persons working for your BSIS licensed company are not always covered by workers compensation insurance?

• A. If business is a corporation and there are named officers with stock ownership, they can be exempted from the workers compensation requirement
• B. All employees are always covered
• C. Independent contractors are exempt
• D. Part-time workers are exempt

Answer: (A)

In California, workers' compensation generally covers employees, but there is a specific exemption for corporate officers who own stock in the company. If the business is a corporation and there are named officers who hold stock, those officers can choose to be exempt from workers' compensation coverage. That means they are not automatically, or always, covered—the exemption is available to them specifically because of their corporate officer status and stock ownership.

So the best answer highlights that corporate officers with stock ownership can opt out, which is why they aren’t guaranteed coverage like other employees. The idea that all employees are always covered isn’t accurate due to this exemption, and while independent contractors aren’t employees by classification, the question centers on this corporate-officer exemption. Part-time workers are typically treated as employees and remain covered unless a separate exemption applies.