What Does a Course of Construction Policy Cover?

When undertaking a construction project, it is essential to have the right insurance coverage in place to protect against potential risks and losses. One such policy that is specifically designed for construction projects is a Course of Construction (COC) policy. Also known as builder’s risk insurance or construction all-risk insurance, a COC policy provides coverage for various aspects of a construction project from start to finish.

A COC policy typically covers the physical structure being built, as well as the materials, equipment, and supplies on-site. This includes protection against loss or damage caused by fire, theft, vandalism, weather-related events, and other unforeseen circumstances. The policy may also cover additional expenses incurred due to delays or disruptions in the construction process.

Here are some common FAQs about Course of Construction policies:

1. Who needs a Course of Construction policy?
– Anyone involved in a construction project, including contractors, builders, developers, and property owners, should consider obtaining a COC policy.

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2. What types of projects are covered?
– COC policies can be tailored to cover various types of construction projects, including residential, commercial, industrial, and civil engineering projects.

3. When should I purchase a COC policy?
– It is best to purchase a COC policy before construction begins to ensure coverage from the start of the project.

4. What is the duration of coverage?
– COC policies typically provide coverage for the duration of the construction project, from groundbreaking to completion.

5. What is excluded from coverage?
– Each policy may have specific exclusions, but common exclusions include pre-existing conditions, faulty workmanship, and intentional damage.

6. Can I add coverage for subcontractors?
– Yes, it is possible to add coverage for subcontractors under a COC policy, depending on the specific requirements of the project.

7. Is there a deductible for a COC policy?
– Yes, like most insurance policies, a COC policy usually includes a deductible that the insured must pay before coverage kicks in.

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In conclusion, a Course of Construction policy provides crucial coverage for construction projects, protecting against various risks and potential losses. It is essential to understand the policy’s coverage, exclusions, and limitations to ensure adequate protection throughout the construction process.