A Class B contractor in Virginia employs 8 workers. What is the minimum workers compensation coverage required per occurrence?
Correct Answer
A) $1,000,000
Virginia requires minimum workers compensation coverage of $1,000,000 per occurrence for contractors, regardless of class or number of employees.
Why This Is the Correct Answer
$1,000,000 per occurrence is the standard minimum workers' compensation liability coverage required for Virginia contractors. This requirement applies uniformly regardless of contractor class (A, B, or C) or the number of employees, once the employee threshold for mandatory coverage is met.
Why the Other Options Are Wrong
Option B: $2,000,000
$2,000,000 exceeds the required minimum. While contractors may choose to carry higher limits, $2,000,000 is not the statutory minimum per occurrence requirement.
Option C: $500,000
$500,000 is below the required minimum and would leave the contractor out of compliance with Virginia licensing requirements. Some candidates confuse this with general liability minimums for smaller contractors.
Option D: $100,000
$100,000 is far below the required minimum. This figure may be confused with limits applicable in other states or to other types of coverage. Virginia requires $1,000,000 for contractor workers' comp.
Memory Technique
One million dollars — it takes at least $1,000,000 to 'comp' in Virginia. Think: 'A million reasons to stay safe on the job site' — Virginia demands $1M minimum coverage.
More Virginia Questions
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A Virginia contractor fails to pay a subcontractor $18,500 for completed work. Under Virginia mechanics lien law, within how many days must the subcontractor file a memorandum of lien to preserve their lien rights?
A Virginia contractor employs 8 workers with a total annual payroll of $420,000. Using the standard construction rate of $8.50 per $100 of payroll, what is the annual workers' compensation premium?
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