Oregon Construction Contractors (CCB) Practice Test

The requirement for carrying workers' compensation insurance varies based on the structure of the business and the relationship between its members. In the case of a limited liability partnership (LLP) with employees, regardless of whether they are family members, there is an obligation to carry workers' compensation insurance. This is because workers' compensation is designed to protect all employees in the event of work-related injuries, and the law views employees distinctly from the business owners or partners.

Even though the employees in this scenario are family members, their employment status necessitates that the LLP maintains workers' compensation coverage. This not only protects the employees but also safeguards the business from potential liabilities associated with work-related injuries.

As for the other options, they do not require workers' compensation based on the outlined criteria. An LLC with all family members and no employees, for instance, is not obligated to carry workers' compensation since there are no employees to cover. Similarly, a corporation with two non-family members as classified in specific ways may often have different requirements, but family relationships and actual employment status are key factors in determining coverage. Lastly, a sole proprietor without any employees is typically not required to obtain workers' compensation since there are no employees to insure.