Which type of insurance is essential for a contractor to cover claims for bodily injury to third parties?

Liability insurance is essential for a contractor as it provides coverage for claims related to bodily injury or property damage caused to third parties during the performance of their work. This type of insurance protects contractors against legal claims and expenses that may arise if a client or member of the public is injured due to the contractor's negligence or actions.

For instance, if a worker accidentally causes an injury to a passerby while on a job site, liability insurance would cover the costs associated with medical expenses and potential legal fees that could arise from such a claim. This protection is crucial for contractors who operate in environments where there is a risk of accidents that could injure individuals not employed by the contractor.

Other types of insurance mentioned do not serve the same purpose. For example, workers' compensation is designed to cover medical costs and lost wages for employees who suffer work-related injuries, professional liability insurance is more focused on claims related to professional negligence or failure to perform professional duties, and property insurance covers damage to the contractor's own tools, equipment, and physical property rather than injuries to third parties. Therefore, liability insurance specifically addresses the need to cover potential claims made by third parties regarding bodily injury, making it the correct choice.