Under Florida Administrative Code 61G4, what is the minimum amount of general liability insurance required for a general contractor?
Correct Answer
A) $1,000,000
Florida Administrative Code 61G4 requires general contractors to maintain a minimum of $1,000,000 in general liability insurance coverage.
Why This Is the Correct Answer
Florida Administrative Code 61G4-15.028 specifically mandates that general contractors must maintain a minimum of $1,000,000 in general liability insurance coverage. This requirement is designed to protect the public and ensure contractors can cover potential damages or injuries that may occur during construction projects. The $1,000,000 minimum applies to both occurrence and aggregate coverage limits. This is a statutory requirement that must be maintained throughout the duration of the contractor's license.
Why the Other Options Are Wrong
Option B: $250,000
$100,000 is significantly below the required minimum and would not provide adequate protection for the scope of work typically performed by general contractors in Florida.
Option C: $100,000
$500,000 is still below the mandated minimum amount required by Florida Administrative Code 61G4 for general contractors.
Memory Technique
Think 'Million Dollar Contractor' - Florida general contractors need $1,000,000 (1 million) in liability coverage to match their professional status and responsibility level.
Reference Hint
Florida Administrative Code 61G4-15.028 - Insurance Requirements for Contractors
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