What are the types of insurance a building owner would want an asbestos contractor to possess before being allowed to work in the building?

• A. Cyber, Property, Liability
• B. Travel, D&O, EPL
• C. Workers compensation, general liability, and asbestos liability insurance
• D. Health, Life, Auto

Answer: (C)

The key idea is matching insurance coverage to the risks of working with hazardous materials. An asbestos contractor should have three core types of coverage before starting work: workers’ compensation, general liability, and asbestos liability insurance.

Workers’ compensation covers medical treatment and wage replacement for workers who are injured on the job, and it’s typically required for anyone employing staff. General liability protects against third-party claims for bodily injury or property damage that could arise from the contractor’s on-site activities, such as dust exposure or damage to the building during removal or encapsulation. Asbestos liability insurance is specialized coverage that specifically addresses claims related to asbestos exposure, including defense costs and settlements; standard policies may exclude or limit such claims, so dedicated asbestos liability coverage helps ensure protection and can be a contractual requirement.

Other policy categories like cyber, travel, directors-and-officers, employment practices, or personal auto coverage don’t address the on-site risks and potential asbestos-related claims involved in this work, and thus aren’t the appropriate protections for this scenario.