What Penalty Does an Employer Face When the Employer Is

Multiple Choice

What penalty does an employer face when the employer is required by law to have workers' compensation coverage, but allows the coverage to lapse?

A) The company will be fined for every day without coverage and must also pay the medical bills of any injured employees.
B) The company cannot be sanctioned under these circumstances.
C) The company must pay death benefits, but not medical bills, for any injured employee.
D) The company must be disbanded.