Free C-27 LICENSE Bond and Insurance Questions and Answers

Question 1

What is the purpose of a contractor’s bond for a C-27 license?

Accepted Answer

To ensure payment to subcontractors and suppliers.

Answer

To cover personal liability for landscaping mistakes.

Answer

To provide insurance against employee injuries.

Answer

To guarantee compliance with state laws and regulations.

Question 2

What type of insurance is required for a C-27 license holder if they have employees?

Accepted Answer

Workers' compensation insurance.

Answer

General liability insurance.

Answer

Property insurance.

Answer

Professional liability insurance.

Question 3

How much coverage is typically required for a contractor’s bond?

Accepted Answer

$15,000

Answer

$1,000

Answer

$5,000

Answer

$25,000

Question 4

Who benefits from the contractor’s bond?

Accepted Answer

The client, for financial recovery.

Answer

The contractor, for personal protection.

Answer

The insurance company, for risk management.

Answer

The government, for regulatory compliance.

Question 5

What should a contractor do if they do not have employees?

Accepted Answer

Skip the workers' compensation insurance requirement.

Answer

Obtain workers' compensation insurance anyway.

Answer

Submit proof of insurance to the CSLB.

Answer

Replace workers' compensation insurance with general liability insurance.