Rock the Georgia Residential Contractor Exam 2025 – Build Your Success Blueprint!

General liability insurance is designed to protect contractors against various risks associated with their business operations. The primary coverage includes property damage and bodily injury to third parties, which is crucial for contractors given the nature of their work. If a contractor's actions result in damage to someone else's property or if a person is injured on the job site, general liability insurance will cover the associated costs, including legal fees, medical expenses, and damages awarded in lawsuits.

For contractors, this type of insurance offers essential financial protection as it ensures they are not solely liable for incidents resulting from their work. This kind of coverage extends beyond injuries or damages that occur only on the contractor's property, encompassing events that happen at client sites or other locations where they perform work.

The other options are limited in scope. For instance, stating that it covers only injuries occurring on their property ignores the broader liability that contractors face. Likewise, the claim that it covers all business-related lawsuits is too broad, as not all lawsuits will be covered under general liability policies. Additionally, only insuring employees overlooks the fact that general liability is primarily focused on protecting against claims from third parties, not employee-related incidents. Thus, the choice correctly identifying that general liability insurance covers property damage and bodily injury to others accurately reflects