Under Hawaii law, what is the minimum general liability insurance coverage required for contractors performing public works projects?
Correct Answer
B) $1,000,000 per occurrence
Hawaii requires contractors on public works projects to carry minimum general liability insurance of $1,000,000 per occurrence.
Why This Is the Correct Answer
$1,000,000 per occurrence is the minimum general liability coverage required for contractors on public works projects in Hawaii. This higher threshold reflects the greater exposure and public interest involved in government-funded construction.
Why the Other Options Are Wrong
Option A: $750,000 per occurrence
$750,000 per occurrence is not a Hawaii standard threshold for contractor liability insurance. It is a distracting number that falls between common amounts but does not match the code requirement.
Option C: $500,000 per occurrence
$500,000 per occurrence is below the required minimum for public works. This might apply in some other states or contexts, but Hawaii's public works standard is $1,000,000.
Option D: $2,000,000 per occurrence
$2,000,000 per occurrence is above the minimum required, though some projects or contracts may require higher limits. The question asks for the minimum, which is $1,000,000.
Memory Technique
Public works = $1M minimum. Think: 'Public = $1 Million.' Public projects are big government jobs, and $1,000,000 is a round, memorable number that represents the baseline protection the public deserves.
More Hawaii Questions
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Under Hawaii's mechanics lien law, a subcontractor must provide preliminary notice within how many days of first furnishing labor or materials?
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