A policy that covers a contractor for the loss of a building under construction by fire is called?

The term "builders risk" refers to a specific type of insurance designed to cover buildings while they are under construction. This policy provides coverage for losses due to certain risks such as fire, theft, vandalism, and some natural disasters that may occur during the construction phase. Essentially, it protects the financial investment made by contractors, developers, and property owners against potential losses specific to the construction process.

In contrast, general liability insurance primarily covers claims related to bodily injury and property damage, but does not typically extend to losses incurred from the construction itself. Workers' compensation insurance is focused on providing benefits to employees who sustain injuries on the job, and does not cover property loss. Professional liability insurance is aimed at protecting against claims of negligence or errors in the provision of services, not the physical loss of property under construction. Thus, the most accurate and relevant coverage for loss of a building under construction due to fire is provided by builders risk insurance.