What Does Course of Construction Insurance Cover?
A COC policy covers a property and your construction materials from a broad range of risks, including:
- Fires, explosions, and lightning strikes
- Windstorms, hail, excessive rain, natural disasters, and floods
- Burglary, theft, vandalism, and damage caused by malicious acts
- Damages resulting from the impact of a vehicle or an aircraft
- Subsidence or the collapse of a structure under construction
While this policy is a must-have for builders and renovators, it won’t cover everything you need. For example, your tools and equipment aren’t covered by a course of construction policy. For that, you need tools and equipment insurance. Likewise, you need a commercial auto policy for your company’s vehicles.
Course of Construction Insurance vs Builders’ Risk Insurance
It’s not uncommon for contractors to wonder if they need COC or builders’ risk insurance. So, let’s clarify that COC insurance is builders’ risk insurance. It is a form of property insurance that protects contractors and property owners from the start to finish of a construction project, be it residential, commercial, or industrial.
What Does Course of Construction Insurance Cost?
When it comes to the cost of an annual COC insurance policy, there are two things to bear in mind:
- The cost of a COC insurance premium varies by the insurer as well as your business’s details, services, and the project at hand.
- Basing your purchasing decision on the lowest price isn’t necessarily the best way to go.
An insurance company determines the cost of a COC policy after considering several factors, including:
- The project’s cost and the type of project (residential, commercial, industrial)
- The overall value of the structure you’re building or renovating
- The location of the property you need the policy for
- Where your business is located and the services you provide
- Your years of experience
- What your insurance claim history is
Also, while it’s wise to shop around for an insurance policy, instead of focusing primarily on the price, focus on what coverages are on offer and the limits and exclusions. That’s how to get value for money for your business insurance policy. And remember: a business insurance policy is tax-deductible.
Let our friendly team take the hassle of getting the coverage you need off your hands. We’ll shop our partner network of over 50 insurers to get you the course of construction (or builders’ risk) insurance you need, so you can concentrate on hitting the nail on the head and delighting your customers.