What does the Course of Construction Policy Entail? - Zupnick Associates

The course of construction policy (COC) is also commonly known as Builder’s Risk Insurance.

This type of insurance is taken by real estate developers to protect against additional costs of repair or replacements that may be as a result of accidents on the course of construction. So imagine a scenario where before the end of the day on a day’s hard work you and your entire crew of professionals go home early due to the great storm that is brewing.

The storm through the night hits hard, and the elements outside are deadly. Unfortunately, on the following day at work, you discover that the building in construction has collapsed as a result of the storm.

What do you do?

Imagine the huge dent the costs would incur in your pocket if you were to do the job all over again. It is challenging, and this brings out the high risk that the construction projects face.

The course of construction policy plays a huge role in covering such risks.

Coverage options

There are many options of risks that this policy covers as a far as construction goes.

In case of fire eruptions on the construction site, the Course of Construction policy covers the repair damages.

In the case of the accident presented, the COC cover would facilitate removal of debris and repairs for the whole structure at the insurance company’s costs.

In the event of burglary and there is theft of construction materials, the COC comes to your rescue.

Similarly, when riots and perpetration of malicious acts vandalize the project building, the COC policy provides compensation for such.

Other options covered by the Course of Construction policy include impact by aircraft or vehicles and lastly explosions.

In the case of the accident presented, the COC cover would facilitate removal of debris and repairs for the whole structure at the insurance company’s costs.

However, it is important to note that the policy does not cover every loss within the construction period.

Examples of such cases include earthquakes, mechanical malfunction, and employee theft.


Nonetheless, it is an essential cover for you as a real estate developer because it gives you a piece of mind by protecting your investment.

Several aspects are generic to real estate that you cannot necessarily avoid or effectively safeguard. COC can protect you against such elements that may encompass the severe effects of weather or even theft.

Contact us today for more information about Builder’s Risk Insurance.

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