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

Builders risk insurance is specifically designed to cover projects that are under construction. This type of insurance protects against damage to the completed portions of a construction project as well as materials and equipment on the site. It covers a variety of risks, including fire, vandalism, theft, and some natural disasters, ensuring that if damage occurs, it can be repaired without substantial financial loss to the project owner or contractor.

In comparison, general liability insurance provides coverage for bodily injury and property damage claims arising from business operations, but it doesn’t specifically address risks related to the construction process itself. Workers' compensation insurance is focused on covering medical expenses and lost wages for employees who are injured on the job, which does not protect the construction project itself. Professional liability insurance, on the other hand, covers claims related to professional services and negligence but is not relevant to physical property damage that occurs during construction. Thus, builders risk is the appropriate type of insurance for protecting the completed portions of a construction project.