What is the minimum amount of general liability insurance required for Florida general contractors?
Correct Answer
A) $300,000 per occurrence
Florida Statute 489.115 requires general contractors to maintain a minimum of $300,000 general liability insurance per occurrence. This is a basic requirement for license maintenance.
Why This Is the Correct Answer
Florida Statute 489.115 specifically mandates that general contractors maintain a minimum of $300,000 in general liability insurance per occurrence. This is the baseline legal requirement established by state law for license maintenance and operation. The statute sets this as the minimum threshold to ensure contractors can cover potential damages from their construction activities. This requirement is fundamental to contractor licensing and must be maintained throughout the license period.
Why the Other Options Are Wrong
Option B: $500,000 per occurrence
$500,000 per occurrence exceeds the minimum statutory requirement. While contractors may choose to carry this amount for better protection, Florida law only requires $300,000 as the minimum threshold.
Option C: $1,000,000 per occurrence
$1,000,000 per occurrence is a common industry standard and often required by clients or lenders, but it is not the minimum amount mandated by Florida statute for basic license compliance.
Option D: $2,000,000 per occurrence
$2,000,000 per occurrence is well above the statutory minimum and would typically be carried for large commercial projects or specific contractual requirements, not basic license maintenance.
Memory Technique
Think '3 for minimum' - $300,000 is the floor, not the ceiling. Many carry more, but 300K is what the law demands as absolute minimum.
Reference Hint
Florida Statute 489.115 - Contractor licensing requirements and insurance provisions
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