Business & LicensingQuestion 1388 of 1605
A licensed LLC contractor must carry liability insurance in an aggregate amount that increases with the number of persons employed. What is the minimum aggregate coverage floor?
a.$100,000
b.$25,000
c.$1,000,000
d.$500,000
Explanation
Under B&P Code section 7071.19, a licensed LLC must maintain liability insurance with an aggregate limit of at least $1,000,000 for companies with five or fewer persons, increasing by $100,000 per additional person up to $5,000,000.
Law Reference: B&P Code §7071.19Practice all 1605 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)