Utah General Contractors Business and Law Practice Exam 2026 - Free Practice Questions and Study Guide

The most appropriate type of insurance to protect a contractor for losses due to a fire on a construction project is All Risk Builders Insurance. This type of insurance is specifically designed for construction projects, covering a wide range of risks, including damage due to fire, theft, vandalism, natural disasters, and other unforeseen events while construction is ongoing. This comprehensive policy ensures that contractors can recover from substantial financial losses caused by incidents that may occur during the course of construction.

Liability insurance primarily protects against claims arising from injury or damage to third parties or their property, which does not directly cover losses incurred from a fire damaging the contractor's own project. Property insurance, while it covers damages to owned property, may not extend to construction sites and could have limitations based on the phase of construction. Workers' compensation insurance is focused on providing benefits to employees injured on the job and does not cover property damage resulting from incidents like fires.

In summary, All Risk Builders Insurance is tailored for the unique risks of construction projects and offers the most comprehensive protection against losses due to fire, making it the best choice for contractors in this scenario.