What is Course of Construction Insurance?

Course of Construction (COC) insurance is also known as Builders Risk coverage.  COC coverage is a special type of property insurance that protects against damage to buildings while they are under construction or (substantial) renovation.  There is no single standard builders risk form, so when time permits, we like to obtain a few quotes to compare the coverage. 

Coverage is usually written on an “All Risks” (ie. except what is excluded) basis and typically applies not only to property at the construction site but also to property at off-site storage locations and while in transit. Builders risk insurance is typically written on a completed project value. This type of coverage is written in a cost per month of coverage eg. 3, 6, 9, 12 months.  Depending on the insurer, the cost can increase when an extension is needed and in most cases, the remaining premium is non-refundable when the construction is completed. 


What Does Course of Construction Insurance Cover?

Common Course of Construction Losses:


Water Damage









This wording also has the ability to cover “Soft Costs” being costs that would be re-incurred after a loss.  Eg. Financing charges, Legal, Accounting, inspections, fees

Builders Risk policies can have different coverage and exclusions and warranties applicable all depending on the insurer. For example, some insurers will require the site to be fenced (others don’t), alarmed, garbage removed from the building every night, hot work restrictions, subcontractors have minimum amounts of liability insurance, etc.  It is important to read all of this special warranties / exclusions very carefully. 

For more information, don’t hesitate to “Collis” today.

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