A contractor's general liability insurance policy in Georgia must maintain minimum coverage of what amount per occurrence?
Correct Answer
D) $500,000
Georgia requires contractors to maintain general liability insurance with minimum coverage of $500,000 per occurrence under state regulations.
Why This Is the Correct Answer
Georgia state regulations require contractors to maintain general liability insurance with a minimum of $500,000 per occurrence. This is the statutory minimum established to protect property owners and the public from contractor-caused damages.
Why the Other Options Are Wrong
Option A: $250,000
$250,000 is below the Georgia statutory minimum of $500,000 per occurrence. A policy at this level would not satisfy Georgia's licensing and registration requirements for contractors.
Option B: $100,000
$100,000 is significantly below the required minimum. While $100,000 in liability coverage might suffice in some contexts or for personal policies, it does not meet Georgia's contractor-specific general liability minimum of $500,000 per occurrence.
Option C: $1,000,000
$1,000,000 exceeds the minimum requirement. While many contractors voluntarily carry $1,000,000 in coverage (and it is often recommended), the statutory minimum under Georgia regulations is $500,000 per occurrence — not $1,000,000.
Memory Technique
Georgia contractor liability minimum = $500,000 per occurrence. Think: 'Half a million — Georgia's minimum.' The number $500K = half of $1M. Many carry $1M, but Georgia's floor is $500K.
More Georgia Questions
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Which situation would require a Georgia contractor to obtain workers' compensation insurance?
A contractor receives a stop work order from the local building official. The contractor continues working despite the order. What is the typical penalty range?
A contractor's license expires on June 30th. They submit a renewal application on July 15th. What additional requirement must they meet?
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A contractor's annual payroll is $450,000. If the workers compensation rate is 8.5 per $100 of payroll, what is the annual premium?
What is the threshold amount above which a contractor must be licensed in Georgia?
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