What is the minimum general liability insurance coverage required for a Tier IV contractor in South Carolina?
Correct Answer
B) $1,000,000
Tier IV contractors must maintain minimum general liability coverage of $1,000,000 under South Carolina licensing requirements.
Why This Is the Correct Answer
South Carolina licensing regulations require Tier IV contractors — those undertaking the largest and most complex commercial projects — to carry a minimum of $1,000,000 in general liability insurance. This high threshold reflects the greater financial exposure associated with large-scale construction work.
Why the Other Options Are Wrong
Option A: $300,000
$300,000 is far below the Tier IV minimum of $1,000,000. This amount may approximate lower-tier requirements but is not sufficient for a Tier IV license. Selecting this option would underestimate the coverage required for major commercial work.
Option C: $100,000
$100,000 is the lowest of the distractors and reflects coverage amounts sometimes seen in very small or residential contractor requirements. It is far below the $1,000,000 required for Tier IV commercial work.
Option D: $500,000
$500,000 is half the required Tier IV minimum and may correspond to a lower tier's insurance requirement. It is not sufficient for Tier IV and would leave a contractor under-insured relative to SC code.
Memory Technique
Tier IV = $1 Million — both have the number '1' prominently. Think 'IV = 1 big job, 1 million dollars.' The Roman numeral IV has a '1' (I) followed by subtraction, and the coverage has a '1' followed by six zeros.
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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