Nail the Oregon CCB Contractors Test 2026 – Build Your Success Story!

A licensed contractor is indeed required to maintain insurance for third parties, primarily to protect against any potential liabilities that could arise during the course of their work. This requirement helps ensure that both the contractor and clients have financial protection in case of accidents, injuries, or damages that could occur while performing construction activities.

Liability insurance not only safeguards the contractor's interests but is also a requirement for licensure in many jurisdictions, including Oregon. This requirement is established to promote professionalism in the contracting industry and provide peace of mind to clients knowing that they have recourse if something goes wrong.

In contrast, the other options do not reflect the comprehensive nature of the insurance requirement. There is no differentiation in the need for insurance based solely on the type of project (commercial or residential); rather, the overarching requirement applies regardless of project type, ensuring that contractors are accountable for their work at all times.