The Importance of a Course of Construction (COC) Policy

Importance of Course of Construction (COC) CoverageA lot can go wrong throughout the course of a construction project, which is why construction general liability insurance exists. The construction industry highly benefits from a strong and trusted coverage that is designed to protect your operation during the course of construction. Construction general liability insurance is absolutely necessary for every construction project to cover costs such as lawsuits and financial impacts that come from injuries, accidents or other unexpected occurrences. However, you want to ensure that the property on a project is also covered, ranging from the contractors’ equipment to the structure itself. This is where a Course of Construction (COC) policy, also known as Builder’s Risk, becomes necessary.

Covered Losses

A COC policy covers property losses due to causes including burning, vandalism, and theft. This policy provides reimbursement for these losses. Insurance agencies have a list of what the policy will cover. It is common that particular coverages are excluded from the policy.


Certain areas of the building must be tested to ensure they are functioning. Heating and air conditioning systems, for example, must be working before the building is complete.
If malfunction of these machines occur, it is likely to result in a fire or explosion. Testing coverage recognizes that contractors are at risk simply trying out machines they did not produce and can come across financial burdens even though they aren’t at fault.

The Details

A COC policy is designed to protect a structure under construction from the most common unfortunate events and can even insure materials stored on the site waiting to be installed. Oftentimes there are other options available to add to your coverage; such as flood and windstorm coverage, and losses due to law changes.  If a covered loss presents delays, a contractor may face financier penalties, such as unexpected taxes. This is called a soft cost and can be written into the insurance agreement.

Any new construction projects, refurbishment or rehab work requires COC to be properly protected against potential loss. Policies are available for multiple site projects. Certain potential projects may qualify for commercial developers. The value of the project, your claims and performance history, other risk factors, and chosen deductibles determine the policy cost.

There are various options available to supplement your construction general liability insurance.

These options can include:

  • Frame construction
  • Scaffolding
  • Debris removal
  • Pollution cleanup
  • Fire department charges
  • Valuable papers and records coverage
  • Permission to occupy insurance (allowing partial occupancy throughout building completion)

About Provident Protection Plus Insurance Agency

At Provident Protection Plus Insurance Agency, we want to ensure your high-net-worth homes are protected during the holidays and year-round. Our homeowners’ insurance policies are designed specifically to protect affluent homes like yours. To learn more about our coverage options, contact our specialists today at (973) 579-6776.