What Is Course of Construction (COC) Insurance in Canada? Coverage, Cost, and Builders’ Risk Explained

Course of construction insurance and builders’ risk insurance usually mean the same thing.

The most important thing is the policy wording: what property is covered, which risks are included, and what is excluded.

What Does Course of Construction Insurance Cover?

A standard course of construction or builders’ risk policy may cover:

• The building or structure under construction, renovation, or installation
• Materials and supplies at the job site
• In many cases, materials being transported or stored temporarily before installation
• Some temporary structures or project property, like scaffolding, fencing, forms, or signs, if the policy includes them
• Damage from covered risks like fire, lightning, wind, theft, vandalism, explosion, hail, and certain types of collapse
• Sometimes, soft costs or delay expenses if a covered loss slows the project and the policy includes this coverage

What Is Not Covered By Course of Construction Insurance?

Course of construction insurance is a must-have for builders and renovation experts, but it won’t cover everything these professionals need. Depending on the policy, exclusions may include the following:

• Third-party bodily injury or property damage claims, which are usually handled by general liability insurance
• Employee injuries, which are typically covered by workers’ compensation
• Business vehicle accidents, which require commercial auto insurance
• Tools, mobile machinery, and contractor equipment that may need tools and equipment insurance
• Certain catastrophe risks, such as flood, earthquake, hurricane, or high-wind exposures, unless specifically included or endorsed
• Common exclusions such as wear and tear, rust or corrosion, mechanical breakdown, employee theft, and damage tied to faulty design, planning, or workmanship

Course of Construction Insurance vs Builders’ Risk Insurance

For most contractors, property owners, and developers, course of construction insurance and builders’ risk insurance mean the same thing. Both provide property coverage during construction or renovation.

Course of Construction Insurance vs Contractors’ All-Risk Insurance

The main difference between course of construction insurance and contractors’ all-risk insurance is how much each covers.

Course of construction insurance focuses on certain property aspects of a construction or renovation project. Contractors’ all-risk insurance is usually broader, covering everyone involved and providing both property and liability protection.

What Does Course of Construction Insurance Cost?

There is no set price for construction insurance. The cost depends on your project, the policy, and the coverage you select. Insurers look at several factors when setting the price, including:

• The type of project and its value or anticipated construction cost
• The location of the property and its exposure to risks like floods or natural catastrophes
• Your company’s location
• The policy’s coverage limits, deductibles, and optional endorsements
• What your insurance claim history is

Don’t choose a policy just because it is the cheapest. Consider your project and what really needs to be covered.

Frequently Asked Questions About Course of Construction Insurance

Who needs course of construction insurance in Canada?

Anyone working on a new build, major renovation, remodel, or addition may need this insurance. This includes homeowners, business owners, general contractors, construction companies, real estate developers, and renovation contractors.

Who usually buys and pays for course of construction insurance?

Usually, the property owner buys this insurance. Sometimes, a general contractor will purchase it if they own the building or if the contract requires them to. It is best to decide this in writing before work begins so everyone knows who is responsible for coverage.

Do I still need course of construction insurance if I already have contractor’s insurance or home insurance?

Yes. A standard contractor policy usually does not cover the building during construction, and home insurance may not apply during major renovations.

When does course of construction insurance start and end?

This insurance is meant to protect the project from the beginning of construction or renovation until it is finished. Once the project is complete, the owner’s property policy takes over.

Get the Right Course of Construction Insurance For Your Next Build Online

Our team of licensed, experienced insurance brokers can help you get the right coverage for your building or renovation project, making the process easy for you.

Fill out our online application for a free quote in under five minutes.

We’ll shop our partner network of over 50 insurers to get you the comprehensive course of construction or builders’ risk insurance you need so you can concentrate on hitting the nail on the head and delighting your customers. 

– Updated April 1, 2026.

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