What is the required combined single limit liability amount?

What is the required combined single limit liability amount?

• A. $300,000
• B. $100,000
• C. $50,000
• D. $1,000,000

Answer: (B)

This question tests knowing the minimum combined single limit (CSL) liability amount required for a Texas fire sprinkler contractor. A combined single limit means there is one total limit available to pay for both bodily injury and property damage arising from a single incident—the claim is not split into separate bodily injury and property damage limits. In this context, the licensed minimum CSL you must carry is $100,000. That means your liability policy must provide at least $100,000 to cover any one occurrence. Lower than that would not meet the requirement, while higher amounts (like $300,000 or $1,000,000) do satisfy the rule, but the question is asking for the required minimum, which is $100,000.

This question tests knowing the minimum combined single limit (CSL) liability amount required for a Texas fire sprinkler contractor. A combined single limit means there is one total limit available to pay for both bodily injury and property damage arising from a single incident—the claim is not split into separate bodily injury and property damage limits.

In this context, the licensed minimum CSL you must carry is $100,000. That means your liability policy must provide at least $100,000 to cover any one occurrence. Lower than that would not meet the requirement, while higher amounts (like $300,000 or $1,000,000) do satisfy the rule, but the question is asking for the required minimum, which is $100,000.