Arizona Contractors License Practice Exam

Question: 1 / 400

What is required to maintain general liability insurance for contractors in Arizona?

A minimum of $100,000 coverage

A minimum of $300,000 coverage

In Arizona, contractors are required to maintain general liability insurance with a minimum coverage amount of $300,000. This requirement is in place to ensure that contractors have adequate financial protection against claims that may arise from property damage, bodily injury, or other liabilities incurred during their business operations. Adequate insurance coverage not only safeguards the contractors themselves but also protects their clients and the public, ensuring that there are resources available to cover potential damages or legal costs.

While higher coverage amounts are available and can provide additional peace of mind, the state has set the minimum requirement at $300,000 as a baseline to ensure a standard level of protection is met. This requirement aligns with industry standards and helps ensure that contractors are financially responsible in their operations within Arizona.

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A minimum of $500,000 coverage

A minimum of $1,000,000 coverage

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