course of construction insurance

Throughout the construction process, there are numerous opportunities for things to go wrong. Although contractors and companies carry general liability insurance, this liability protection is only applicable in situations where the accident, injuries, or other unexpected incidents occurred. For coverage of the property involved with the project, whether it is the structure in progress or contractor equipment, a course of construction insurance policy (COC) will provide the most assistance.

Areas of Coverage

The details of the COC insurance policy will specifically identify the areas of coverage, but the losses included generally stem from incidents involving:

Vandalism
Theft
Fire

One area that is included in testing. Builders are at risk when testing equipment they did not manufacture in various areas of the building, before ensuring the structure is safe and complete. Gas appliances and heating and cooling systems are an example. Although not directly responsible for a negative outcome such as fire or explosion, contractors are able to use their course of construction insurance to provide financial coverage for the loss. The policy will also detail the areas excluded from coverage.

The details of a COC policy may depend on the nature of the project, the size of the company, and unexpected complications. Weather delays or changes in zoning or building laws might influence the applicability of coverage, but consulting with your agent can help you have these soft costs written into your insurance agreement.