Final answer:
The three principal types of insurance generally required on construction contracts are Contractors' All Risks (CAR) Insurance, Public Liability Insurance, and Professional Indemnity Insurance. These cover property damage, third-party injury or damage claims, and alleged professional negligence respectively.
Step-by-step explanation:
Principal Types of Insurance Required on Construction Contracts
Contractors' All Risks (CAR) Insurance: This insurance covers damage to the property and third-party injury or damage claims. CAR insurance is essential for construction projects as it ensures coverage for property damage and any liability that may arise from injuries or accidents on the construction site.
Public Liability Insurance: This insurance is critical as it protects against claims of personal injury or property damage that third parties might make against the business. Public liability insurance ensures that if the insured party is found liable for injuries or damage, the insurance company will cover the compensation costs.
Professional Indemnity Insurance: This is often required for professional service providers like architects and engineers. It covers the insured against claims for loss or damage made by clients or third parties as a result of alleged or actual negligent acts or omissions in the provision of the professional service.