Under Georgia law, what is the minimum liability insurance coverage required for a general contractor license?
Correct Answer
D) $500,000 per occurrence
Georgia requires general contractors to maintain minimum liability insurance of $500,000 per occurrence and $1,000,000 aggregate.
Why This Is the Correct Answer
Georgia law requires licensed general contractors to carry a minimum of $500,000 per occurrence in general liability insurance, with an aggregate limit of $1,000,000. This requirement protects property owners and the public from damages arising from construction activities. The $500,000 per-occurrence threshold is a specific statutory requirement that contractors must maintain as a condition of licensure.
Why the Other Options Are Wrong
Option A: $250,000 per occurrence
$250,000 per occurrence is below the statutory minimum and would not satisfy Georgia's general contractor licensing requirement. This amount may reflect liability limits for smaller specialty trades or residential contractors in other states but does not meet Georgia's general contractor standard.
Option B: $50,000 per occurrence
$50,000 per occurrence is far below the required minimum and would represent insufficient coverage for general contracting work. This amount might be confused with surety bond amounts or minimum coverage thresholds for unlicensed minor work, not licensed general contractor operations.
Option C: $100,000 per occurrence
$100,000 per occurrence is below the $500,000 statutory minimum. This figure may be confused with minimum coverage for certain subcontractor categories or residential specialty licenses in Georgia or other states.
Memory Technique
Associate '$500,000' with 'Georgia General' — both start with 'G' and the number 500 can be remembered as 'five zeros' matching the five letters in 'GEORG(ia).' Alternatively: 'Half a million to build in Georgia.' The aggregate is double that at $1 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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