According to South Carolina insurance requirements, what is the minimum general liability coverage for contractors?
Correct Answer
A) $300,000 per occurrence
South Carolina requires minimum general liability insurance of $300,000 per occurrence for licensed contractors.
Why This Is the Correct Answer
Option A ($300,000 per occurrence) is correct. South Carolina requires licensed contractors to carry a minimum of $300,000 per occurrence in general liability insurance. This is a specific statutory requirement that contractors must maintain to keep their license in good standing.
Why the Other Options Are Wrong
Option B: $1,000,000 per occurrence
Option B ($1,000,000 per occurrence) is incorrect. While $1 million per occurrence is a common industry standard and many project owners require it, it is not the minimum required by South Carolina law for licensing purposes. Confusing market practice with legal minimums is a common trap.
Option C: $100,000 per occurrence
Option C ($100,000 per occurrence) is incorrect. $100,000 is below SC's statutory minimum and would not satisfy licensing requirements. A contractor carrying only $100,000 in liability coverage would be in violation of state insurance requirements.
Option D: $500,000 per occurrence
Option D ($500,000 per occurrence) is incorrect. $500,000 is between the correct answer and the $1 million figure, designed to trap candidates who are uncertain of the exact amount. South Carolina's legal minimum is $300,000, not $500,000.
Memory Technique
SC General Liability minimum = $300,000. Memory hook: '3 zeros after 3' — $300,000. Or: 'SC requires 3 hundred thousand — one for each letter in the abbreviation S-C plus one more.' Alternatively, associate 300 with the movie '300' — Spartan warriors protecting SC contractors.
More South Carolina Questions
What is the maximum contract value a Tier 1 residential contractor can undertake in South Carolina?
Under South Carolina law, a contractor discovers a material defect in their work 6 months after project completion. The owner demands immediate correction. What is the contractor's legal obligation?
A contractor has 15 employees and annual payroll of $780,000. The workers compensation rate is $4.25 per $100 of payroll. What is the annual premium?
According to SC building codes, what is the maximum allowable deflection for a residential floor joist with a 16-foot span under live load?
A subcontractor completes $25,000 of electrical work but is not paid by the general contractor. The general contractor was paid by the owner. What is the subcontractor's lien priority against the property?
A contractor receives a stop work order from the building official. Work continues for 3 additional days before stopping. What penalty applies per South Carolina building codes?
Under South Carolina workers compensation law, which of the following employees would be exempt from coverage requirements?
Under South Carolina contractor licensing law, how many hours of continuing education are required annually for license renewal?
A Class B contractor wants to bid on a $750,000 commercial project. What must the contractor do to be eligible?
A contractor's license expires on June 30th. They submit renewal application and fees on July 15th. What additional penalty must they pay?
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