Utah Contractor Practice Exam

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Prepare for the Utah Contractor Exam with comprehensive quizzes and study resources. Gain confidence by accessing multiple-choice questions designed to enhance your knowledge and skills for the licensing exam.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Which type of insurance is unnecessary for a small contractor with no employees working from home?

Property damage
General liability
Commercial vehicle
Workers' compensation

The correct answer is: Workers' compensation

For a small contractor who has no employees and operates from home, workers' compensation insurance is generally unnecessary. This type of insurance is designed to provide coverage for medical expenses and lost wages for employees who may suffer work-related injuries or illnesses. Since this contractor does not have any employees, there is no requirement or risk that necessitates this insurance. In contrast, property damage, general liability, and commercial vehicle insurance all serve significant purposes. Property damage insurance protects against losses incurred to tools and equipment, general liability covers claims related to property damage or bodily injury that might occur as a result of the contractor's business activities, and commercial vehicle insurance is essential if the contractor uses a vehicle for work purposes. Therefore, while these other types are important for protecting different facets of a contractor's business, workers' compensation is not applicable in this scenario.