What type of insurance covers the damage to property due to negligence while a contractor is working?

The appropriate type of insurance that covers damage to property due to negligence while a contractor is working is known as Completed Operations Liability. This insurance specifically addresses incidents that occur after a contractor has completed their work but is still held responsible for any damages that arise as a result of that work. For example, if a contractor installs a roof that later leaks, causing property damage, Completed Operations Liability would come into play.

This coverage is crucial for contractors because it protects them from claims that could arise after the job is done, ensuring they are financially covered for negligence that may occur during or after the execution of their services. It is an essential aspect of a comprehensive risk management strategy for contractors in various industries, especially in construction and renovations, where future claims can occur long after the project has been completed.

In contrast, other types of insurance mentioned serve different purposes. Contractor's Pollution Liability focuses specifically on pollution-related claims, Professional Liability Insurance is mainly for errors and omissions in professional services, and General Liability Insurance covers a broader range of liabilities but does not specifically address claims related to completed operations.