What type of insurance helps protect a construction project from certain kinds of property damages?

Builders risk insurance specifically provides coverage for property damage that may occur during the construction of a building or renovation project. This type of insurance protects against risks such as fire, theft, vandalism, and certain weather-related damages to the structure while it is being constructed. It is essential for contractors and property owners to secure this insurance to safeguard their investment during the construction phase.

While liability insurance focuses on protecting against claims of bodily injury or property damage caused to third parties, and workers' compensation addresses workplace injuries for employees, builders risk insurance is uniquely tailored to cover the property's physical aspects during construction. General insurance is a broad term that doesn't specifically refer to the particular needs and risks associated with construction projects. Thus, builders risk insurance is the ideal choice for protecting construction properties from specified types of damages.