Utah Contractor Practice Exam

Disable ads (and more) with a membership for a one time $4.99 payment

Study for the Utah Contractor Exam with comprehensive quizzes and resources designed to help you master the content. Engage with flashcards and multiple-choice questions that equip you with the knowledge needed to pass the exam!

Practice this question and more.

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

Continue without changes
Seek legal advice only
Review and adjust coverage options
Rely on verbal agreements

The correct answer is: 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.