Which insurance is designed to protect assets in the event a claim for damages resulting from negligence is filed?

Professional Liability Insurance is specifically designed to protect professionals and their assets in the event that a claim for damages is filed against them due to negligence, errors, or omissions in the performance of their professional duties. This type of insurance is critical for professionals involved in design and construction, as it covers legal defense costs and any settlements or judgments that may arise from lawsuits related to their professional services.

In the context of construction projects, where complex designs and various stakeholders are involved, the risk of such claims is significant. Professional Liability Insurance helps safeguard the financial stability of architects, engineers, and other design professionals, ensuring that they can adequately respond to claims without jeopardizing their business operations.

The other options serve different purposes: Workers' Compensation Insurance covers employees injured on the job; a Performance Bond ensures that a contractor fulfills their contractual obligations; and Builder's Risk Insurance protects against property damage during construction. These options do not address liability for professional negligence, which is why Professional Liability Insurance is the appropriate choice in this scenario.