What is one consequence for employers without proper insurance coverage?

• A. A fine of up to 20%
• B. A fine of up to 50%
• C. Increased taxes for employees
• D. Loss of business license

Answer: (B)

One significant consequence for employers lacking proper insurance coverage is the potential for a fine of up to 50%. This fine can result from not complying with regulations that require specific types of insurance, such as workers' compensation or general liability insurance. The enforcement of these regulations is designed to protect both employees and the public by ensuring that businesses can cover the costs associated with workplace injuries, damages, or other liabilities.

Employers who fail to secure the necessary coverage may face hefty financial penalties as a deterrent against neglecting their responsibilities. The fines serve as a critical reminder of the importance of operating within legal and safety standards within the industry. Proper insurance coverage not only provides financial protection for the employer but also safeguards employees, thereby promoting a healthy workplace environment.