Picture this: it’s summertime, and your construction crew is making tremendous progress on a residential building project and is on budget and ahead of schedule. Your team is nearing the finish line with only a few tasks left to complete. The property owner is delighted with the work thus far, as you’ve kept them apprised of developments along the way.

Your team finishes work for the week, but while packing things up and securing the property before departing, a bucket containing oily rags is overlooked and accidentally left sitting inside the garage of the building. It’s July, and the temperature is sweltering over the weekend. As the heat rises inside the garage, it reaches a flash-point temperature, and the oily rags spontaneously combust. The fire spreads from the garage to other parts of the structure, destroying the excellent work your team has done so far and the remaining materials on-site you need to complete the project. Now what?

home builder protected with COC Insurance

If you have course of construction (COC) insurance, you can relax.

COC insurance protects property owners, contractors, and the job sites, materials, and buildings under construction from the devastating costs of accidents while work is underway. It may also provide extended coverage after the project has been completed.

But imagine if you don’t have protection like that and what it would cost you to start the entire project over and at your expense.

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:

  1. The cost of a COC insurance premium varies by the insurer as well as your business’s details, services, and the project at hand.
  2. 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.

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About the Author: Liam Lahey

Liam is the Content Marketing Manager at Zensurance. A writer and editor for more than 20 years, he has been published in several newspapers and magazines, including Yahoo! Canada Finance, Metroland Media, IT World Canada and others.