Under Georgia law, what is the minimum insurance coverage required for general contractors performing work valued at $500,000?
Correct Answer
C) $300,000 general liability and $100,000 property damage
Georgia requires minimum general liability insurance of $300,000 and property damage coverage of $100,000 for general contractors.
Why This Is the Correct Answer
Georgia's minimum insurance requirements for general contractors are $300,000 general liability and $100,000 property damage coverage. These figures are set by state statute and apply regardless of the specific contract value.
Why the Other Options Are Wrong
Option A: $1,000,000 general liability and $500,000 property damage
$1,000,000 / $500,000 exceeds the statutory minimums. Some contractors carry higher limits voluntarily or per contract requirements, but the state minimum is $300,000 / $100,000.
Option B: $300,000 general liability and $50,000 property damage
$300,000 general liability is correct, but $50,000 property damage is below the required $100,000 minimum. A combination with only $50,000 property damage would not meet Georgia's statutory floor.
Option D: $500,000 general liability and $100,000 property damage
$500,000 general liability exceeds the statutory minimum. The required minimum is $300,000 — matching the dollar figure to the contract value ($500,000) is a distractor trap.
Memory Technique
Georgia general contractor minimums: '300/100' — $300K liability, $100K property damage. Think of it as a 3-to-1 ratio: three hundred to one hundred.
More Georgia Questions
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Which situation would require a Georgia contractor to obtain workers' compensation insurance?
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A contractor's license expires on June 30th. They submit a renewal application on July 15th. What additional requirement must they meet?
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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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