Arizona Contractors License Practice Exam

Question: 1 / 400

What type of insurance is typically required for Arizona contractors?

Worker’s compensation insurance

General liability insurance

In Arizona, general liability insurance is essential for contractors because it provides coverage for various risks associated with construction projects, including bodily injury, property damage, and personal injury claims that may arise during the course of business operations. This type of insurance protects contractors against claims that could financially cripple a contractor due to accidents, injuries, or damages incurred while performing work.

While other types of insurance, such as worker's compensation, property insurance, and professional liability insurance, can also be important depending on the specific operations of a contractor, general liability insurance is typically the most fundamental requirement. It serves as a safeguard for contractors from third-party claims, ensuring that they can manage the financial implications of unforeseen incidents on the job site, which contributes to the overall stability and credibility of their contracting business in Arizona.

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Property insurance

Professional liability insurance

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