Under Hawaii law, what is the minimum general liability insurance coverage required for licensed contractors?
Correct Answer
A) No minimum requirement specified
Hawaii does not specify a minimum general liability insurance amount for contractors, though bonding requirements exist.
Why This Is the Correct Answer
Option A is correct. Hawaii's contractor licensing statutes (HRS 444) do not specify a minimum dollar amount for general liability insurance. The state requires contractors to maintain a bond as a condition of licensure, but no statutory minimum for general liability coverage is prescribed. Contractors may be required by project owners or lenders to carry specific amounts, but this is not a state licensing mandate.
Why the Other Options Are Wrong
Option B: $25,000 per occurrence
$25,000 per occurrence is a plausible-sounding threshold but is not established by Hawaii law as a contractor licensing requirement. This figure may appear in some commercial contexts but does not reflect HRS 444 or related regulations.
Option C: $100,000 per occurrence
$100,000 per occurrence is a common general liability threshold in many states and in private contracts, but Hawaii law does not mandate this amount for contractor licensing. Conflating common industry practice with legal requirements is a typical trap.
Option D: $50,000 per occurrence
$50,000 per occurrence is similarly not codified in Hawaii contractor licensing law. While some project specifications or county requirements might reference this figure, it is not a state minimum under HRS 444.
Memory Technique
Remember: Hawaii says 'Bond yes, GL minimum — no.' The state mandates a contractor's bond but leaves general liability coverage amounts unspecified in the licensing statute. Think of it as Hawaii being flexible on insurance amounts while being firm on bonding.
More Hawaii Questions
What is the minimum general liability insurance coverage required for Hawaii contractors under HRS 444?
A contractor's license expires on June 30th. What is the late renewal penalty fee in Hawaii?
A contractor completes $85,000 worth of work on a residential project in Hawaii. The property owner fails to pay. Under HRS 507, what is the maximum lien amount the contractor can claim?
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?
A contractor discovers contaminated soil during excavation of a residential property. Under Hawaii environmental regulations, who must be notified immediately?
A contractor working on a project in a Hawaii historic district must obtain approval from which entity before beginning work?
A contractor fails to obtain required building permits before starting work. The property owner discovers this and terminates the contract. Under Hawaii law, what is the contractor's right to payment?
A contractor has 12 employees with a total annual payroll of $480,000. If the workers compensation rate is $12.75 per $100 of payroll, what is the annual premium?
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