What type of insurance typically covers property damage incurred during a construction project?

Builders risk insurance is specifically designed to protect against property damage that may occur during the construction phase of a project. This type of insurance provides coverage for buildings that are under construction, as well as materials, fixtures, and equipment that are being used for the project. It accounts for various risks such as fire, vandalism, theft, and certain types of weather-related incidents that could hinder the construction process.

The other types of insurance mentioned, while relevant in different contexts, do not directly address the specific needs of a construction project. Business income insurance typically covers loss of income due to a business being unable to operate, legal liability insurance is directed at protecting against claims resulting from injuries or damages to others, and building and personal property insurance generally covers existing properties rather than those under construction. Therefore, builders risk is the appropriate choice for safeguarding against property damage during construction.