Which insurance coverage amount is required for a South Carolina Tier 2 commercial contractor?
Correct Answer
D) $1,000,000 general liability
Tier 2 commercial contractors in South Carolina must maintain minimum $1,000,000 general liability insurance coverage.
Why This Is the Correct Answer
South Carolina's licensing structure requires Tier 2 commercial contractors to carry a minimum of $1,000,000 in general liability insurance. This higher threshold reflects the larger scale and risk profile of commercial projects handled at the Tier 2 level.
Why the Other Options Are Wrong
Option A: $100,000 general liability
$100,000 is the minimum requirement for lower-tier or residential specialty contractors, not Tier 2 commercial. It is insufficient for the scope of work Tier 2 contractors may perform.
Option B: $300,000 general liability
$300,000 does not correspond to any standard South Carolina commercial contractor tier requirement. This figure may be confused with bonding amounts or insurance thresholds from other states.
Option C: $500,000 general liability
$500,000 is below the Tier 2 minimum and may correspond to a lower commercial tier. Candidates sometimes select this as a 'middle' answer, but SC law sets Tier 2 at $1,000,000.
Memory Technique
Tier 2 = $1,000,000. Think 'Tier Two = Top Dollar' — the commercial tier requires the million-dollar coverage.
More South Carolina Questions
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