Which of the following is considered an indirect cost of a project?

General liability insurance is classified as an indirect cost because it is not directly attributable to a specific project or task. Instead, it supports the overall operation of the business by providing necessary coverage that applies across multiple projects or jobs. Indirect costs like insurance, utilities, and administrative expenses are necessary to keep a contractor's business running but do not directly contribute to the individual costs of labor, materials, or specific tools associated with a project.

In contrast, labor costs, material costs, and tool rentals are considered direct costs because they can be directly linked to the execution of a project. Labor costs correspond to the wages paid to workers directly involved in the project. Material costs pertain to the building materials required for the project. Tool rentals are associated with equipment needed specifically for a job. These direct costs directly contribute to the completion of a project and can be easily allocated to specific tasks within that project.