What type of insurance protects against loss due to non-performance of a contract?

Guaranty insurance is specifically designed to protect against losses resulting from the non-performance of a contract. This type of insurance provides coverage for situations where one party fails to fulfill their contractual obligations, thus putting the other party at financial risk. For instance, if a contractor does not complete a project, guaranty insurance would help cover potential losses for the affected party.

Liability insurance, health insurance, and property insurance do not address the issue of contractual non-performance. Liability insurance protects against claims resulting from injuries or damages to another person or property, health insurance covers medical expenses, and property insurance safeguards against damage or loss of physical assets. Therefore, they do not provide the protection that guaranty insurance offers in relation to contractual agreements. Guaranty insurance serves a unique and essential role in ensuring that the financial impacts of contractual failures are mitigated, making it the correct choice for this question.