What type of insurance provides coverage while construction is in progress?

All-Risk Builder's Risk Insurance is specifically designed to provide coverage for buildings and structures that are under construction. This type of insurance protects against various risks that can occur during the construction process, including damage caused by fire, theft, vandalism, and certain types of weather events. The primary focus of Builder's Risk Insurance is to safeguard the investment of both the contractor and the property owner from potentially significant losses that may arise while work is still ongoing.

In contrast, liability insurance primarily covers third-party claims for bodily injury or property damage that may occur as a result of construction activities but does not protect the structure itself while under construction. Workers' compensation insurance provides coverage for employees who are injured on the job, ensuring they receive medical benefits and lost wages, but it does not cover damage to the construction site or materials. General commercial insurance encompasses various business-related coverages but is also not tailored specifically to protect structures in progress.

Thus, the nature of All-Risk Builder's Risk Insurance makes it the correct choice for protecting a construction project while it's being carried out, addressing the specific risks associated directly with the construction phase.