(Canadian Construction Documents Committee Compliant Policies) Course of Construction insures the policy holder against damage to buildings while they are being constructed. These items are not normally covered under a home owner’s policy; however, the owner must have insurance in place on their property or land. This insurance allows for damage or loss as a result of fire, vandalism, lightning, wind damage, or theft.
Who needs this insurance?
General contractors, homeowners, and property owners.
Who is covered by the COC?
The builder, future owner (during the construction phase), and, generally, the contractors and sub-contractors that are supplying the materials and/or the labor.
What items does COC cover?
COC covers materials, supplies, machinery, equipment, and fixtures that are permanent to the building. The erection, installation and alteration of a commercial or residential construction project are also included.
Is my COC insurance limited to the construction site?
No. Your insurance extends protection for any items that are being stored until they are needed on-site or while they are being transported to the work site.
What is not covered under COC?
- The land where the construction is taking place
- Any incident that is not directly attributed to the building or the structure
- Damages from earthquakes, water, or sewage back-ups
As a Homeowner, do I need COC?
If you are performing the work yourself or if the contractor hired to do the work on your behalf does not have sufficient insurance to cover 100% of the potential damages, you require your own COC policy.
Whether you are a builder or a homeowner doing the work, and you are unsure how much to carry for the project in COC insurance, you can hire a risk management service company to help. They conduct surveys based on construction activities on an insured site that is monitored. It adds protection by advising on all phases of construction.
Site Preparation > Preliminary /On-Going Construction > Final Construction > Wrap Up/Completion
Risk management services aid underwriters, brokers and risk managers.
Wrap Up Insurance
This is general liability insurance you can purchase on an individual project that protects all stakeholders (owner, contractor, sub-contractors and consultants) involved. It may be purchased by the builder or the owner.
There are several reasons to take advantage of Wrap Up coverage. It delivers coverage uniformity for a single insurer in the event of claims; and provides services for loss prevention.
Wrap Up insurance gives a higher level of coverage, eliminating duplicate coverage, and removes the expense of multiple premiums.
Disputes will not arise from the insured party not knowing which individual caused the damages.
Wrap up Insurance will be in effect upon completion of the project, ensuring any repairs or faulty work is accounted for. The policy will be unnecessary once the builder or owner obtain their own insurance policy on the finished project.
