Course Of Construction Insurance

Course of Construction (CoC) insurance is a type of property insurance designed to protect contractors, property owners, and other stakeholders during construction projects, including new builds and renovations. 


In this article, we’re going to explore the importance of Course of Construction insurance in the Territories. We’ll go over what CoC insurance covers, who it protects, and when you should buy Course of Construction insurance. 

What Is Course of Construction Insurance?

Course of Construction (CoC) insurance is sometimes referred to as builder’s risk insurance. This insurance aims to protect properties while they’re being built or undergoing renovations. Tools, supplies, and other tangible goods can be covered by CoC insurance. Your policy will also cover soft costs—we’ll get into more details in the next section.


The broad level overview is this—renovations and new builds take a lot of time and come with a lot of risks. Delays can lead to penalties, legal and administrative costs, and lost revenue. Theft, inclement weather, and accidents can lead to material losses. CoC insurance can cover all of this and more.


Here are two important features to keep in mind when considering CoC insurance:


  • It’s “All Risks” insurance, meaning it covers all perils except those specifically excluded by the policy.


  • The insurance policy stays in place until construction is completed, after which a more traditional property insurance (like homeowners insurance) should take its place.


The broad nature of CoC policies means they’re a boon for property owners, investors, and contractors. 

What Does Course of Construction Insurance Cover?

Course of Construction insurance covers both hard costs and soft costs related to construction and renovation. 


Hard costs are the costs of tangible materials and structures. Here are some examples of hard costs that may be covered:


  • The structure being built or renovated
  • Construction materials
  • Scaffolding
  • Landscaping
  • Tools
  • Equipment


Soft costs, on the other hand, are related to professional services, fees, and other intangibles. Here are a few examples of what may be covered:


  • Interest on loans
  • Real estate taxes
  • Professional fees and legal fees (from architects, engineers, lawyers, accountants, and other parties who may need to do additional work due to damage, vandalism, or other risks)
  • Permit fees
  • And more


The costs that are covered (and in what amounts) will vary depending on the policy you purchase. Here at Nation North, we offer a variety of policies tailored to the needs of businesses, investors, and property owners in the Northwest Territories, Yukon, and Nunavut. 

When Should You Purchase Course of Construction Insurance?

Anytime you’re renovating a building or constructing a new building, you should consider purchasing Course of Construction insurance. CoC insurance benefits every stakeholder in a project, from contractors and investors to property owners. You can even share the cost of the premiums; CoC insurance benefits everyone involved in a construction project.

Looking for Course of Construction insurance in the Territories? We can help. Nation North specializes in insurance for Canada’s northern communities—get in touch with one of our brokers today!