What type of insurance protects against claims for bodily injury or property damage during construction?

General liability insurance is specifically designed to protect contractors and construction companies against claims that may arise from bodily injury or property damage occurring during the course of a construction project. This type of insurance covers legal costs and any settlements or judgments that may result from a third-party claim, such as a visitor to the job site getting injured or damage to a neighboring property due to construction activities.

This insurance provides a crucial layer of financial protection, enabling contractors to continue their operations without the burden of potentially devastating costs associated with lawsuits or settlement payments stemming from accidents or mishaps occurring on the job. It is essential for virtually any construction project, as the risk of such claims is inherent to the construction industry.

In contrast, worker's compensation insurance covers injuries that employees may sustain while working on the job, and property insurance typically protects physical assets owned by the contractor from loss or damage. Errors and omissions insurance focuses on professional liability for mistakes or negligence in professional services, which is a different area of risk compared to the direct bodily injury or property damage during construction operations. Therefore, general liability insurance is the correct choice for addressing the specific risks mentioned in the question.