Utah General Contractors - Business and Law Practice Exam

If a contractor works on a project valued at $2,500 and has filed a one-time affirmation, do they need to show proof of public liability insurance?

1. Yes, they must

2. No, they do not

3. Only for projects over $3,000

4. It depends on the client

The correct answer is: Yes, they must

The requirement for proof of public liability insurance is mandated in order to protect clients and the public from any potential liabilities that may arise during construction. In Utah, contractors are typically required to maintain a certain level of insurance coverage, which includes public liability insurance. Even for smaller projects, such as one valued at $2,500, the expectation is that contractors demonstrate their financial responsibility and ability to address any claims that may occur as a result of their work. The affirmation filed by the contractor is essential in establishing compliance with applicable laws and regulations, but it does not exempt them from showing proof of public liability insurance. This insurance ultimately serves as a safeguard for stakeholders involved in the construction process. The nature of the project value is significant since requirements can vary based on the size or complexity of the project. However, the stipulation remains in place across the board, underscoring the necessity of such coverage for contractors working on any sized project without exception.