Which type of insurance protects contractors from claims related to bodily injury or property damage?

The type of insurance that protects contractors from claims related to bodily injury or property damage is general liability insurance. This form of insurance is essential for contractors because it covers legal costs associated with claims made by third parties for injuries or damages that occur as a result of the contractor's operations or activities. For instance, if a visitor to a job site is injured or a property is accidentally damaged during a construction project, general liability insurance will provide coverage for the associated costs, including legal fees and settlements.

This insurance is fundamental for contractors as it not only protects their financial interests but also helps maintain their professional reputation by allowing them to manage the risks inherent in their work environment effectively. The coverage typically includes components like premises liability, product liability, and completed operations, making it a comprehensive solution for liability protection in the construction industry.