Which type of insurance, besides workers' compensation, is required for a public works project?

Which type of insurance, besides workers' compensation, is required for a public works project?

• A. Builder's risk insurance
• B. Liability
• C. Unemployment insurance
• D. Health insurance

Answer: (B)

On public works projects, the project owner needs protection against claims arising from the contractor’s operations. While workers’ compensation covers injuries to the contractor’s employees, liability insurance covers third-party injuries or property damage caused by the contractor’s activities. This transfer of risk is what the project contract typically requires, so general liability insurance is the needed coverage beyond workers’ comp. Unemployment insurance and health insurance are more about employee benefits and payroll obligations than contract-specific risk protection, and builder’s risk insurance is not universally required on every public works job. Therefore, liability insurance is the required type in this context.

On public works projects, the project owner needs protection against claims arising from the contractor’s operations. While workers’ compensation covers injuries to the contractor’s employees, liability insurance covers third-party injuries or property damage caused by the contractor’s activities. This transfer of risk is what the project contract typically requires, so general liability insurance is the needed coverage beyond workers’ comp.

Unemployment insurance and health insurance are more about employee benefits and payroll obligations than contract-specific risk protection, and builder’s risk insurance is not universally required on every public works job. Therefore, liability insurance is the required type in this context.