A residential contractor in Louisiana must maintain what minimum amount of general liability insurance?
Correct Answer
D) $100,000
Louisiana requires residential contractors to maintain minimum general liability insurance of $100,000.
Why This Is the Correct Answer
Option D is correct. Louisiana law requires residential contractors to maintain a minimum of $100,000 in general liability insurance coverage. This requirement exists to ensure contractors can cover damages arising from their work and to protect homeowners from uninsured losses.
Why the Other Options Are Wrong
Option A: $50,000
Option A ($50,000) is below the Louisiana minimum. This amount is insufficient to meet state licensing requirements for residential contractors and would result in license non-compliance.
Option B: $500,000
Option B ($500,000) significantly exceeds the Louisiana minimum requirement. While higher coverage is prudent, the mandatory minimum set by Louisiana for residential contractors is $100,000, not $500,000.
Option C: $300,000
Option C ($300,000) also exceeds the required minimum. This figure may be confused with commercial contractor thresholds or other states' requirements, but it is not the Louisiana residential contractor minimum.
Memory Technique
Associate $100,000 with the word 'one' — one hundred thousand is the one required amount for Louisiana residential contractor liability coverage. Simple and singular.
More Louisiana Questions
A contractor in Louisiana completes $85,000 worth of work on a residential project. The owner pays $70,000 but disputes the remaining $15,000. If the contractor files a lien claim, what percentage penalty can be awarded if the contractor prevails in court?
A contractor discovers contaminated soil during excavation that requires special disposal. The disposal cost is $12,000, and transportation is $3,500. If this was not foreseeable from the contract documents, who typically bears this cost under Louisiana law?
A construction worker is injured on a Louisiana job site. The contractor's workers' compensation carrier has 15 days to investigate. If they don't respond within this period, what happens to the claim?
Under Louisiana law, what is the minimum amount of workers' compensation insurance coverage required for construction contractors?
A contractor's employee is injured on a job site in Louisiana. The contractor has workers' compensation insurance. Which statement is correct regarding the employee's rights?
Under Louisiana Civil Code, if a building contract does not specify a completion date, when is the work considered to be due?
Under Louisiana building codes, what is the minimum width required for emergency egress windows in bedrooms?
A Class B contractor in Louisiana wants to bid on a project worth $175,000. What action must they take?
A contractor's worker is injured and files for workers' compensation. The injury occurred due to the worker's intoxication. Under Louisiana law, what is the likely outcome?
A general contractor discovers contaminated soil during excavation for a commercial project in Louisiana. Which state agency must be notified?
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