Utah Contractor Practice Exam 2026 - Free Contractor License Practice Questions and Study Guide

Question: 1 / 770

What action should a contractor take if their insurance coverage is inadequate?

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Review and adjust coverage options

When a contractor finds their insurance coverage to be inadequate, the most prudent action is to review and adjust coverage options. This step is crucial because adequate insurance protects both the contractor and their clients from potential financial losses due to accidents, injuries, or property damage that may occur during a project.

By reviewing their coverage, a contractor can identify specific gaps or insufficiencies in their policy and determine the necessary adjustments. This may involve increasing coverage limits, adding specialized endorsements, or even switching insurance providers to better suit the needs of their business and the types of projects they undertake.

Taking proactive steps to ensure comprehensive coverage not only fosters trust with clients but also helps to safeguard the contractor’s business against costly claims or liabilities that can arise from unforeseen incidents on the job.

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Rely on verbal agreements

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