Which type of insurance applies only to persons and property not connected with a project?

Disable ads (and more) with a membership for a one time $4.99 payment

Prepare for the Louisiana Horticulture Exam. Utilize flashcards and multiple-choice questions, each with hints and explanations. Equip yourself for your test!

Contractor's Liability Insurance is designed to cover claims that arise from accidents, injuries, or damages that occur to third parties or their property as a result of the contractor's operations. This type of insurance is specifically tailored to protect against risks that are not linked directly to the project or work being conducted.

In essence, it focuses on the liability aspect for risks that affect individuals or property external to the project itself. For example, if a passerby is injured on a job site or if property is damaged due to the contractor's activities, this insurance would step in to cover those situations.

While General Liability Insurance may seem similar, it usually provides broader coverage that includes not just claims related to the contractor's activities but can also encompass the project itself. Professional Liability Insurance is more specialized and concentrates on issues related to professional advice or services, such as errors or omissions. Workman's Compensation Insurance specifically addresses injuries to employees and does not cover third-party claims.

Therefore, Contractor's Liability Insurance is the correct answer because it is distinctively focused on protecting against liabilities that arise from connections to individuals and properties outside of the project itself.