Which type of coverage is required for materials and supplies used in a construction project?

Builder's Risk insurance is specifically designed to protect buildings and structures under construction, as well as the materials and supplies that are used in the construction process. This type of coverage is crucial because it addresses the unique risks associated with construction sites, such as theft, vandalism, and damage from various types of perils during the project.

Since construction materials can often be stored on-site or in temporary facilities, Builder's Risk insurance provides financial protection against incidents that could lead to significant losses. This includes not just the building under construction, but also the materials used in the project, ensuring that the project can progress without interruption due to unforeseen events.

In contrast, Landlord’s insurance typically protects rental properties but does not cover construction. General liability insurance focuses on protecting against third-party claims for bodily injury or property damage but does not safeguard the construction site and its materials. Worker’s compensation insurance provides benefits to injured workers but does not directly cover materials and supplies. Therefore, Builder's Risk insurance is uniquely suited to the needs of construction projects, making it the correct choice.