What type of insurance is designed to protect against third-party claims due to negligence?

Liability insurance is specifically designed to provide protection against third-party claims arising from negligence or unintentional harm caused by an individual or business. This type of insurance covers legal costs and settlements if the insured is found liable for causing injury or property damage to someone else. It is essential for contractors, as they are often exposed to risks that could lead to claims from clients, the public, or other parties related to their work.

The other types of insurance mentioned serve different purposes. Property insurance protects against damage to the insured's own property, health insurance primarily covers medical expenses and health-related issues for the insured, and workers' compensation insurance provides benefits to employees who suffer job-related injuries or illnesses. While all of these are important types of insurance for contractors, they do not specifically address claims made by third parties due to negligence.