Define "contractor's all-risk insurance".

Contractor's all-risk insurance is designed to provide coverage for a contractor's liability for damages that occur during construction projects. This type of policy encompasses a broad range of risks associated with construction activities, including damage to materials, equipment, and partially completed work. It ensures that contractors are financially protected against unexpected incidents that could result in losses, such as weather-related damages, accidental damages from machinery, or theft of materials.

This coverage is essential for contractors as it helps them mitigate financial risks and provides peace of mind while carrying out their work. Given the unpredictable nature of construction projects, having this type of insurance means that contractors can focus on completing projects without the looming worry of potential liabilities related to damages.

While the other options pertain to aspects related to construction and contractual obligations, they do not accurately represent the comprehensive coverage offered by contractor's all-risk insurance. The identified correct answer captures the essence of the insurance's purpose and its importance within the construction industry.