What is the minimum liability insurance coverage required for a Nevada Class B General Building contractor?
Correct Answer
B) $1,000,000 per occurrence
Nevada requires Class B General Building contractors to maintain minimum liability insurance of $1,000,000 per occurrence as part of their financial responsibility requirements.
Why This Is the Correct Answer
Option B is correct. Nevada requires Class B General Building contractors to carry a minimum of $1,000,000 per occurrence in general liability insurance as part of the financial responsibility requirements under NRS 624. This significant coverage amount reflects the scope of work Class B contractors typically perform.
Why the Other Options Are Wrong
Option A: $100,000 per occurrence
$100,000 per occurrence is well below the required minimum for Class B contractors and would be insufficient to meet Nevada's financial responsibility requirements. This amount might be associated with lower-tier or specialty licenses.
Option C: $500,000 per occurrence
$500,000 per occurrence is below the $1,000,000 minimum required for Class B contractors. This is a plausible distractor but does not reflect the actual NRS 624 requirement.
Option D: $300,000 per occurrence
$300,000 per occurrence is not a standard liability insurance threshold recognized under Nevada's contractor licensing law for any major license class.
Memory Technique
Class B = $1 Million minimum liability. Think: 'B for Big coverage — one million dollars.' The $1M figure is a clean round number that is easy to remember once you associate it with the Class B license.
More Nevada Questions
Under NRS 624, what is the minimum net worth requirement for a Class A General Contractor license in Nevada?
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A contractor receives a Notice of Disciplinary Action from the NSCB. Within how many days can they request a hearing to contest the action?
Which Nevada building code edition is currently adopted for commercial construction in most Nevada jurisdictions?
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A contractor's employee is injured on a Nevada job site. The contractor lacks workers' compensation insurance. What is the potential penalty under NRS 624?
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A Nevada contractor fails to carry required workers' compensation insurance. What penalty can the Nevada Industrial Insurance System impose per day of non-compliance?
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