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

Question: 1 / 400

What is one purpose of general liability insurance for contractors?

To ensure project profits

To provide health benefits to workers

To cover damages caused to third parties or their property

General liability insurance is designed primarily to safeguard contractors from claims related to injuries or damages they may inadvertently cause to third parties or their property during the course of their work. This type of insurance covers a variety of scenarios, including bodily injury to non-employees and property damage that might occur at a job site. For example, if a subcontractor accidentally damages a client's property while performing work, general liability insurance would help cover the costs associated with repairing the damages or compensating the property owner, thereby protecting the contractor's financial interests. This protection is crucial as it not only helps prevent significant out-of-pocket expenses but also mitigates the risk of lawsuits stemming from accidents or damages that occur during a project.

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To protect against equipment theft

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