What is the minimum general liability insurance coverage required for a South Carolina General Contractor Class A license?
Correct Answer
B) $500,000
South Carolina requires minimum general liability insurance of $500,000 for General Contractor Class A licenses.
Why This Is the Correct Answer
Option B ($500,000) is correct. South Carolina's Contractor's Licensing Board requires a minimum of $500,000 in general liability insurance for General Contractor Class A licensees. This requirement ensures that Class A contractors — who can bid on projects of any dollar amount — carry sufficient coverage to protect against major claims arising from their construction activities.
Why the Other Options Are Wrong
Option A: $100,000
Option A ($100,000) is incorrect. $100,000 is below the South Carolina minimum for a Class A license. This lower figure might apply to lower license classifications or subcontractor registrations in some states, but it does not meet the Class A threshold in South Carolina.
Option C: $1,000,000
Option C ($1,000,000) is incorrect. While $1,000,000 is a common general liability limit in the construction industry and may be required by many project owners, it exceeds the state minimum for Class A licensing in South Carolina. Confusing industry best practices with statutory minimums is a common error.
Option D: $300,000
Option D ($300,000) is incorrect. $300,000 does not correspond to South Carolina's Class A license insurance requirement. This amount falls between the incorrect options and may be designed to catch candidates who are guessing rather than recalling the specific statutory figure.
Memory Technique
For South Carolina Class A: think '$500K for the A-team.' Class A contractors handle any size project — they need substantial coverage. $500,000 = half a million — remember it as the 'half-million hurdle' to reach the top contractor class in SC.
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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