What type of insurance is necessary to protect completed portions of a construction project?

Builders risk insurance is specifically designed to protect construction projects while they are in progress, including the completed portions of the project. This type of insurance covers damage to the building and materials on site due to various risks such as fire, vandalism, or theft during the construction period.

Unlike general liability insurance, which primarily covers third-party claims for bodily injury or property damage, builders risk insurance specifically addresses damage to the structure being built. Workers compensation insurance is focused on providing benefits to employees who might be injured on the job, while professional liability insurance deals with claims arising from professional services or negligence in the execution of those services, usually relevant to architects and engineers rather than the project itself. Thus, builders risk insurance is the appropriate choice for ensuring that the completed and ongoing work on a construction site is adequately protected.