What type of insurance provides first-party coverage against physical damage to a project during construction?

Builder's Risk Insurance is specifically designed to provide first-party coverage for physical damage to a project during construction. This type of insurance covers various perils that could lead to damage to the building or structure while it is being constructed, such as fire, vandalism, or weather-related incidents. It protects the interests of the property owner, contractors, and sometimes subcontractors, ensuring that financial losses due to damages incurred during the construction process are mitigated.

In contrast, Commercial General Liability covers third-party claims related to bodily injury or property damage caused by the contractor's operations but does not cover damage to the work itself. Worker's Compensation is focused on providing benefits to employees who are injured on the job and does not address property damage. Employer's Liability Insurance covers an employer's legal liability for injuries to employees but again does not pertain to coverage for physical damage to construction projects. Thus, Builder's Risk Insurance is the appropriate coverage type for addressing damage occurring during the construction phase.