Florida Contractor Practice Exam 2025 - Free Contractor License Practice Questions and Study Guide

Question: 1 / 400

What type of insurance protects against property damage and legal liability?

Health insurance

Workers' compensation insurance

General liability insurance

General liability insurance is specifically designed to protect businesses from claims of property damage or bodily injury that could arise during normal operations. This type of insurance covers legal costs, medical expenses, and any damages awarded to third parties due to incidents related to the business's activities. For contractors, this is particularly essential as it safeguards against potential lawsuits stemming from accidents on job sites or damage to a client's property.

Health insurance, while important for covering medical expenses related to an individual's health, does not address property damage or legal liability. Workers' compensation insurance provides coverage for employees who get injured on the job, but it does not extend to third-party claims or property damage. Life insurance offers financial support to beneficiaries in the case of the policyholder's death, which is unrelated to property damage or liability issues. Therefore, general liability insurance is the appropriate choice for protecting against property damage and legal liability concerns.

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