New Jersey Lead Supervisor Practice Exam 2025 – Comprehensive Prep Guide

Question: 1 / 400

What happens if a contractor fails to meet the insurance requirements?

The project can continue without penalties

They are disqualified from bidding

When a contractor fails to meet the insurance requirements, they are typically disqualified from bidding on future projects. This is a critical measure to ensure that all contractors comply with established safety and financial protocols, which protect both the workers on the site and the integrity of the project. Insurance requirements are put in place to mitigate risks associated with construction work, such as accidents, damages, and liabilities. Without adequate insurance, the contractor cannot fulfill their obligations to protect personnel and property, ultimately leading to their disqualification from further bidding opportunities. This ensures that only responsible and compliant contractors are engaged in projects, maintaining standards in construction practices.

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They must pay a fine

They can still work without coverage

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