What is the minimum amount of general liability insurance required for a Georgia residential contractor?
Correct Answer
A) $300,000
Georgia requires residential contractors to maintain a minimum of $300,000 in general liability insurance coverage.
Why This Is the Correct Answer
Georgia law (O.C.G.A. § 43-41) requires residential contractors to maintain a minimum of $300,000 in general liability insurance coverage as a condition of licensure. This protects homeowners against property damage and bodily injury arising from the contractor's work.
Why the Other Options Are Wrong
Option B: $1,000,000
$1,000,000 is a common commercial general liability limit seen in larger commercial contracts, but it exceeds Georgia's statutory minimum for residential contractors. Confusing commercial project requirements with residential licensing requirements is a frequent error.
Option C: $100,000
$100,000 is below Georgia's statutory minimum of $300,000. While some states set lower minimums, Georgia specifically requires the higher $300,000 floor for residential contractor licenses.
Option D: $500,000
$500,000 exceeds the statutory minimum. A contractor may voluntarily carry $500,000 or more, but the law only mandates $300,000 as the floor.
Memory Technique
The number 300 maps to Georgia's three main residential financial requirements: $300,000 insurance, $10,000 bond, and registration with the State Licensing Board. The largest number ($300,000) goes with the largest protection (insurance).
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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A Georgia contractor has 8 employees with a total annual payroll of $320,000. The workers compensation rate is $4.50 per $100 of payroll. What is the annual workers compensation premium?
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