What Does Course of Construction Insurance Cover?

Course of construction insurance, also known as builder’s risk insurance, is a type of coverage that protects construction projects from unexpected damages and losses. It provides coverage during the construction phase, from the start of the project until its completion. This insurance is essential for both contractors and property owners, as it safeguards their investment and minimizes financial risks. Here are some key aspects that course of construction insurance typically covers:

1. Property Damage: This insurance covers damage caused by fire, vandalism, theft, or natural disasters like storms or earthquakes. It includes the cost of repairing or replacing the property.

2. Material Damage: It covers the loss or damage of construction materials, tools, and equipment on-site. This includes theft, accidental damage, or loss due to weather conditions.

3. Third-Party Liability: Course of construction insurance protects against legal claims made by third parties for bodily injury or property damage caused by the construction project.

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4. Additional Expenses: It includes coverage for additional expenses incurred due to delays caused by covered losses, such as temporary structures or additional labor costs.

5. Soft Costs: This insurance may cover expenses like architectural fees, permits, and other professional services required for the completion of the project.

6. Delayed Start: If the construction is delayed due to covered losses, the insurance can provide compensation for the loss of income during the interruption period.

7. Subcontractors: Course of construction insurance can also cover subcontractors working on the project, protecting them from potential risks and liabilities.


1. Do I need course of construction insurance if I already have general liability insurance?
Course of construction insurance provides specific coverage during the construction phase that general liability insurance may not cover. It is essential to have both types of insurance to ensure comprehensive protection.

2. Who typically purchases course of construction insurance?
Usually, the contractor or property owner purchases course of construction insurance. However, the responsibility can be negotiated between the parties involved in the construction project.

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3. Does course of construction insurance cover faulty workmanship?
No, course of construction insurance does not cover faulty workmanship. It primarily covers damages caused by unforeseen events or accidents during the construction process.

4. Can I add coverage for design changes during the construction project?
Yes, you can customize your course of construction insurance policy to include coverage for design changes or modifications during the construction project.

5. Does course of construction insurance cover theft of construction materials?
Yes, theft of construction materials is typically covered under course of construction insurance. However, there may be specific conditions or limits set by the insurance provider.

6. Can I transfer the course of construction insurance to the property owner after completion?
No, course of construction insurance cannot be transferred to the property owner. Once the construction is complete, the property owner should obtain a separate insurance policy, such as property insurance.

7. How long does course of construction insurance coverage last?
Course of construction insurance coverage lasts for the duration of the construction project, from the start until completion or until the policy expiration date, whichever comes first.

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