What type of insurance provides coverage for negligently-caused errors in design and construction?

What type of insurance provides coverage for negligently-caused errors in design and construction?

• A. General Liability Insurance
• B. Design Build Insurance
• C. Property Insurance
• D. Workers' Compensation Insurance

Answer: (B)

The correct type of insurance that provides coverage for negligently-caused errors in design and construction is Design Build Insurance. This insurance is specifically tailored for the design-build delivery method, where one entity is responsible for both design and construction. It protects against professional errors, omissions, and accidents that may occur during the design and construction phases. Design Build Insurance not only covers the construction risks but also addresses professional liabilities related to design mistakes, which are crucial as these can lead to significant financial implications for a builder or designer. By encompassing both the design elements and the construction efforts, it offers comprehensive protection that is essential in projects where the two functions are intertwined and where negligence in either area can result in severe repercussions. In contrast, general liability insurance focuses on bodily injury and property damage claims, property insurance protects physical assets against loss or damage, and workers' compensation insurance covers employee injuries and illnesses that occur on the job. None of these options directly address liability from negligent design or construction errors like Design Build Insurance does.

The correct type of insurance that provides coverage for negligently-caused errors in design and construction is Design Build Insurance. This insurance is specifically tailored for the design-build delivery method, where one entity is responsible for both design and construction. It protects against professional errors, omissions, and accidents that may occur during the design and construction phases.

Design Build Insurance not only covers the construction risks but also addresses professional liabilities related to design mistakes, which are crucial as these can lead to significant financial implications for a builder or designer. By encompassing both the design elements and the construction efforts, it offers comprehensive protection that is essential in projects where the two functions are intertwined and where negligence in either area can result in severe repercussions.

In contrast, general liability insurance focuses on bodily injury and property damage claims, property insurance protects physical assets against loss or damage, and workers' compensation insurance covers employee injuries and illnesses that occur on the job. None of these options directly address liability from negligent design or construction errors like Design Build Insurance does.