Under South Carolina law, what is the minimum amount of general liability insurance required for a Class A general contractor?
Correct Answer
A) $1,000,000
South Carolina requires Class A general contractors to maintain minimum general liability insurance of $1,000,000.
Why This Is the Correct Answer
SC law requires Class A general contractors — who can bid on the largest projects with no dollar limit — to maintain a minimum of $1,000,000 in general liability insurance. This level of coverage reflects the significant financial exposure associated with large commercial and residential projects.
Why the Other Options Are Wrong
Option B: $300,000
$300,000 is below the statutory minimum for a Class A contractor. This lower amount might be associated with smaller license classifications or specialty trades, but it does not meet the $1,000,000 requirement for the Class A general contractor license.
Option C: $2,000,000
$2,000,000 exceeds the minimum required. While a contractor may voluntarily carry more than the minimum, the statutory requirement for SC Class A general contractors is $1,000,000. Overstating the requirement would make it harder for contractors to qualify.
Option D: $500,000
$500,000 is half the required amount. This may be associated with lower license classes such as Class B or Class C in SC. The $1,000,000 threshold applies specifically to the Class A classification.
Memory Technique
Class A = Top of the class = $1,000,000. Think: 'A for A-list, A-list means a million-dollar policy.' The 'A' grade in school is perfect (100%) — Class A in SC requires a million-dollar (100% coverage level) policy.
More South Carolina Questions
What is the maximum contract value a Tier 1 residential contractor can undertake in South Carolina?
Under South Carolina law, a contractor discovers a material defect in their work 6 months after project completion. The owner demands immediate correction. What is the contractor's legal obligation?
A contractor has 15 employees and annual payroll of $780,000. The workers compensation rate is $4.25 per $100 of payroll. What is the annual premium?
According to SC building codes, what is the maximum allowable deflection for a residential floor joist with a 16-foot span under live load?
A subcontractor completes $25,000 of electrical work but is not paid by the general contractor. The general contractor was paid by the owner. What is the subcontractor's lien priority against the property?
A contractor receives a stop work order from the building official. Work continues for 3 additional days before stopping. What penalty applies per South Carolina building codes?
Under South Carolina workers compensation law, which of the following employees would be exempt from coverage requirements?
Under South Carolina contractor licensing law, how many hours of continuing education are required annually for license renewal?
A Class B contractor wants to bid on a $750,000 commercial project. What must the contractor do to be eligible?
A contractor's license expires on June 30th. They submit renewal application and fees on July 15th. What additional penalty must they pay?
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