What is the minimum general liability insurance coverage required for Hawaii contractors under HRS 444?
Correct Answer
C) $50,000
Hawaii requires contractors to maintain minimum general liability insurance coverage of $50,000.
Why This Is the Correct Answer
Under Hawaii Revised Statutes (HRS) Chapter 444, licensed contractors are required to maintain a minimum of $50,000 in general liability insurance coverage. This requirement is specifically outlined in the contractor licensing laws to ensure adequate protection for property owners and the public. The $50,000 minimum applies to general contractors and helps guarantee financial responsibility for potential damages or injuries that may occur during construction work.
Why the Other Options Are Wrong
Option A: $25,000
$25,000 is insufficient under Hawaii law. This amount falls below the statutory minimum requirement established in HRS 444 for contractor general liability insurance coverage.
Option B: $75,000
$75,000 exceeds the minimum requirement but is not the statutory minimum. While contractors may choose higher coverage amounts, the law specifically requires $50,000 as the baseline.
Option D: $100,000
$100,000 is double the required minimum amount. Although this would provide greater protection, it exceeds what HRS 444 mandates as the minimum general liability insurance requirement.
Memory Technique
Remember 'Hawaii Five-0' - the famous TV show helps you remember Hawaii requires $50,000 (Five-0 = 50) minimum general liability insurance for contractors.
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