What Is Course of Construction Insurance?

Course of construction insurance in Canada is an important policy that helps prevent gaps in coverage during a new build or renovation project. But who and what does it cover?

If you’re a general contractor, carpenter, or trades professional, you’re likely well aware of the variations between construction-related insurance policies. However, if you’re a homeowner taking on a major renovation, for example, you may be a little confused as to what the difference is between course of construction insurance, builder’s risk, and even trades and contractor’s insurance.

In this article, we’ll answer the following commonly asked questions to help clarify the purpose and functionality of insurance policies related to risk management in construction:

• What does course of construction cover?

• Who does course of construction cover?

• What projects are eligible for this type of insurance?

• How is trades and contractor’s insurance different?

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FAQs About Course of Construction Insurance

What does course of construction cover?

This type of insurance helps prevent gaps in coverage on your building or home by providing Project-Specific Property insurance coverage and Premises Liability insurance. It protects both new projects and pre-existing structures that are undergoing construction against the unexpected, such as damage to your project site from theft, fire, or severe weather.

Often referred to as course of construction insurance, this type of coverage is actually the same as builder’s risk insurance. This means that regardless of what you call it – course of construction or builder’s risk – your policy will be the same.

That said, it’s important to note that coverage may vary, depending on your provider. For example, our Builder’s Risk (Course of Construction) Insurance offers coverage with limits for a completed project value up to $2 million for frame construction and up to $5 million for all other construction types. These limits may vary based on construction type and fire protection.

A few additional key features of our Builder’s Risk (Course of Construction) include coverage of:

• Projects in all provinces, except Quebec

• Buildings up to 80 years old for renovations

• Project length up to 18 months, including extensions

• Coverage for all construction types

• Premises Liability limits up to $5M

• Soft Costs limits up to 25% of Hard Costs

• Sewer Backup, Flood, and Earthquake

Related: When Should Builder’s Risk Insurance Start?

We also offers the following optional coverage types for course of construction insurance:

• Contract Change Order

• Equipment Breakdown

• Rental Value

• Soft Costs for construction delay expenses in terms of interest, legal cost, permit costs, etc.

Of course, all construction projects are unique, so each insurance policy will look a little different. Start your online application now to get your free quote.

Who does course of construction cover?

Because multiple parties are involved in a construction project, there’s usually more than one group or individual who should be insured under this type of coverage. Here’s a list of parties to consider including in your policy:

• Construction manager

• Financial lenders

• General contractor

• Property owner

• Subcontractors

Related: Who Pays for Builder’s Risk Insurance?

What projects are eligible for course of construction?

Whether your project consists of building a brand new commercial property or renovating an existing home, course of construction insurance is important coverage to obtain. However, not all structures are permitted under all policies.

With our Builder’s Risk (Course of Construction), for example, the following projects are eligible:

• New construction

• Renovations and additions, excluding existing structures

• Single-family homes

• Multi-family residential up to 8 family units

• Light commercial buildings

• All construction types

• Frame buildings up to 4 storeys

Related: How Much Does Builder’s Risk Insurance Cost?

How is trades and contractor’s insurance different?

Trades and contractor’s insurance and course of construction are both important types of coverage to have for any job site. And, although it may sound like they should be similar, they actually operate in very different ways.

As described above, course of construction insurance covers the actual property that’s being built or renovated. It also protects the material and equipment that are being used for the project, in case of damage, loss, or theft. Without it, the structure itself would have a gap in coverage, meaning that this insurance should start and end at the same time as the project.

In comparison, insurance for trades professionals and contractors is typically a package policy that allows a service provider to cover their business. For example, this type of insurance offers commercial general liability coverage, which can help protect construction professionals in the event of an accident that causes injury to a client or damage to a property.

Effortless Insurance for Your Project

Our Builder’s Risk (Course of Construction) is designed for all construction types, and provides insurance coverage for a policy period up to 18 months.

Remember, the hardest thing about your project shouldn’t be your insurance! Find out how you can get covered in minutes with our quick, easy, and entirely online application process.

Need Insurance for Your Small Business?

APOLLO and Gallagher have partnered to provide insurance designed for businesses and business professionals. Get a free quote online in under five minutes and receive your policy instantly.

Get a Free Online Quote

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