Under Georgia law, what is the minimum general liability insurance coverage required for a residential contractor?
Correct Answer
A) $500,000
Georgia requires residential contractors to maintain minimum general liability insurance of $500,000.
Why This Is the Correct Answer
Georgia law mandates that residential contractors carry a minimum of $500,000 in general liability insurance. This amount is set by the Georgia State Construction Industry Licensing Board to ensure contractors can cover damages, injuries, or property losses that occur during residential construction projects.
Why the Other Options Are Wrong
Option B: $100,000
$100,000 falls significantly below Georgia's minimum requirement of $500,000. This amount may seem adequate for small projects, but Georgia has established a higher threshold to protect homeowners from underinsured contractors on residential work.
Option C: $250,000
$250,000 is half of the required minimum. While it may appear reasonable, Georgia's statute specifically sets the floor at $500,000 for residential contractors. Selecting this option reflects a common tendency to guess a 'middle' figure without knowing the specific statutory amount.
Option D: $1,000,000
$1,000,000 exceeds the minimum requirement. While many commercial contractors carry this level of coverage (and it's common in commercial contracts), Georgia's statutory minimum for residential contractors is $500,000 — not $1 million.
Memory Technique
Remember: Georgia Residential = $500K. Think '5 for GA' — five hundred thousand for Georgia residential work. It's half a million, not a full million (that's often commercial), and not a quarter million.
More Georgia 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 is building a single-family home in Georgia. The foundation inspection fails due to improper rebar placement. According to Georgia building codes, what is the next required step?
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If a contractor has a weekly payroll of $15,000 and the workers' compensation rate is $8.50 per $100 of payroll, what is the weekly premium?