Under Georgia law, what is the minimum amount of general liability insurance required for a contractor license?
Correct Answer
D) $300,000
Georgia requires contractors to maintain a minimum of $300,000 in general liability insurance coverage as part of their licensing requirements.
Why This Is the Correct Answer
Georgia state law requires contractors to carry a minimum of $300,000 in general liability insurance as a condition of licensure. This amount is set to provide adequate consumer protection and financial coverage for property damage or bodily injury claims arising from construction work. It is a specific statutory requirement that must be maintained throughout the license period.
Why the Other Options Are Wrong
Option A: $50,000
$50,000 is far below Georgia's required minimum. This amount would provide insufficient protection for typical construction project claims and does not meet the statutory threshold for contractor licensing in Georgia.
Option B: $100,000
$100,000 is below the Georgia minimum of $300,000. While $100,000 might satisfy minimum requirements in some other states or contexts, it does not meet Georgia's specific contractor licensing threshold.
Option C: $500,000
$500,000 exceeds Georgia's minimum requirement of $300,000. While carrying $500,000 in coverage is permissible and may be advisable for larger projects, it is not the statutory minimum for licensure.
Memory Technique
Remember 'Georgia = $300K GL.' Think of the Georgia Peach — it's a medium-sized fruit, and $300,000 is the 'medium' amount among the answer choices. It's not the smallest ($50K or $100K) and not the largest ($500K) — it's the Georgia standard.
More ga-supplement Questions
A contractor discovers that a building permit was issued in error and the project violates setback requirements. According to Georgia regulations, what is the contractor's primary obligation?
A contractor employs workers in both construction and office roles. The construction rate is 11.2 per $100 and office rate is 0.8 per $100. Construction payroll is $85,000 and office payroll is $45,000. What is the total workers compensation premium?
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?
A Georgia contractor completes work valued at $15,000 on March 1st. The property owner fails to pay. What is the deadline for filing a materialman's lien?
A contractor fails to pay workers' compensation premiums and coverage lapses. An employee is injured the next day. What is the contractor's liability?
A contractor discovers that the local building official is interpreting a code provision differently than expected. What is the proper appeal process in Georgia?
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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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?
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