Under Hawaii law, what is the minimum general liability insurance coverage required for a Class B contractor?
Correct Answer
B) $300,000 per occurrence
Hawaii requires Class B contractors to maintain minimum general liability insurance of $300,000 per occurrence and $600,000 aggregate.
Why This Is the Correct Answer
Hawaii's contractor licensing rules require Class B general contractors to carry a minimum of $300,000 per occurrence in general liability insurance, with a $600,000 aggregate. This coverage threshold reflects the intermediate scope of work Class B contractors are authorized to perform.
Why the Other Options Are Wrong
Option A: $500,000 per occurrence
$500,000 per occurrence exceeds the Class B minimum requirement. While higher coverage is always permissible, $500,000 is not the stated minimum for a Class B license.
Option C: $1,000,000 per occurrence
$1,000,000 per occurrence is a higher coverage level sometimes associated with larger commercial projects or Class A work, but it is not the minimum required for a Class B license.
Option D: $100,000 per occurrence
$100,000 per occurrence is below the legally required minimum for a Class B contractor in Hawaii. Carrying insufficient coverage would result in license non-compliance.
Memory Technique
Class B = $300K. Think of the letter B as having two bumps — $300,000 per occurrence and $600,000 aggregate (the aggregate is exactly double). '3 and 6' for Class B.
More Hawaii Questions
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A contractor's insurance policy has a $1 million aggregate limit and a $500,000 per occurrence limit. Two separate incidents occur: one causing $400,000 in damages and another causing $300,000. How much will the insurance cover?
Under Hawaii's mechanics lien law, a subcontractor must provide preliminary notice within how many days of first furnishing labor or materials?
A subcontractor provides $28,000 worth of plumbing work but is not paid by the general contractor. Under HRS 507, what is the priority of the mechanics lien compared to a mortgage recorded before construction began?
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A contractor working on a project in a Hawaii historic district must obtain approval from which entity before beginning work?
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