Which insurance generally covers property loss to the work during construction?
Correct Answer
A) Builder's risk insurance
Builder's risk is the usual property policy for loss to the work under construction.
Why This Is the Correct Answer
Builder's risk is the usual property policy for loss to the work under construction.
Why the Other Options Are Wrong
Option B: Bid bond
Choice B gives Bid bond. Its specific error: the option answers a paperwork, payment, or bonding issue.
Option C: Workers' compensation policy
Choice C (Workers' compensation policy) is rejected because it answers the Builder's risk coverage prompt with the wrong practical move.
Option D: Noncollusion affidavit
In procurement and contracting, Noncollusion affidavit is the wrong selection for Builder's risk coverage: it leaves out the controlling Builder's risk coverage result: Builder's risk insurance.
Memory Technique
Make builder's risk coverage a tabbed card: cite the exact condition, then choose Builder's risk insurance.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "Builder's risk insurance" to confirm that Builder's risk is the usual property policy for loss to the work under construction.
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