Virginia Contractor General Practice Test 2025 – Your Complete All-in-One Guide to Exam Success!

The minimum liability insurance requirement for contractors in Virginia is established to ensure that contractors are adequately covered for potential damages or injuries that may occur during the performance of their work. The correct choice reflects the standard minimum threshold of $1 million per occurrence, which provides a significant level of protection for both the contractor and clients, ensuring that the contractor can meet financial responsibilities should any incidents arise.

Having a liability insurance policy of this amount is crucial because it not only protects the contractor from claims but also instills confidence in clients who wish to engage in projects knowing that there is a substantial safety net in place. This requirement serves to reduce the risk to the public and ensures that legal and financial repercussions from accidents or damages are adequately addressed.

While other amounts mentioned may apply to specific scenarios or types of coverage, the $1 million per occurrence is recognized as an industry standard aimed at minimizing risk in construction practices within Virginia.