What type of insurance policy covers the contractor for faulty construction after the project has been turned over to the owner?

Completed Operation Insurance is specifically designed to protect contractors against claims arising from faulty construction or workmanship after the project has been completed and turned over to the owner. This type of insurance addresses issues that may surface after the contractor's work is done, ensuring that if a problem related to the construction occurs, the contractor has coverage for potential liabilities. This is crucial for contractors, as it provides financial protection from claims that could arise long after the construction phase has ended, such as structural failures or defects that affect the property owner.

In contrast, Contractor's Liability Insurance generally provides coverage for incidents that occur during the construction process, addressing bodily injury or property damage related to work still in progress. Professional Liability Insurance focuses more on issues of negligence in service or design rather than construction faults, making it less applicable in this context. Bond Insurance, on the other hand, serves as a guarantee that the contractor will fulfill their obligations under the contract, but does not provide coverage for claims related to construction flaws after project completion. Thus, Completed Operation Insurance is the appropriate choice for protecting contractors in the described situation.