What is Builders Risk or Course of Construction (COC)?
Builders risk insurance, also known as course of construction (COC) insurance, is a specialized form of property coverage that protects buildings and structures while they are being built or renovated. It typically covers sudden physical loss or damage from events like fire, theft, vandalism, and certain weather perils during the construction period. Underwriting factors such as project value, construction materials, and location influence policy terms.
Who Needs It
Owners, developers, general contractors, and some subcontractors usually purchase builders risk to protect their financial interest in a project. Smaller organizations or specialty contractors working on residential or commercial builds may also add builders risk alongside commercial liability or equipment coverage to close protection gaps.
What It Typically Covers
Coverage varies by policy, but common protections include the structure under construction, on-site materials and supplies, temporary structures like scaffolding, and construction equipment. For project-specific guidance, residential builders often review targeted offerings like Builders Risk Insurance — New Residential Construction, while larger projects may look at tailored solutions such as Builders Risk for New Commercial Construction.
Common Exclusions and Limitations
Policies commonly exclude normal wear and tear, war or terrorism (unless endorsed), mechanical breakdown, employee theft, and standard flood or earthquake perils unless explicitly added. Builders risk typically does not cover third-party liability — a separate general liability policy addresses injuries or property damage to others.
Factors That Influence Cost
Premiums reflect the total construction value, type of construction materials, geographic location and local risk factors, project duration, and selected coverage limits. Risk management practices on-site, such as security measures and storage of materials, can reduce exposure to job-site hazards and may affect pricing.
Proof of Insurance & Compliance
Lenders, municipalities, and project owners commonly require proof of builders risk before work begins. Requirements vary by jurisdiction and contract, so confirm certificate and policy details early in the project to meet compliance and lender conditions. For additional policy comparisons and program options, see Builders Risk Insurance.
How to Get a Quote
To explore coverage options and receive a builders risk quote tailored to your project, visit our quote page. When requesting a quote, be prepared to provide project value, construction schedule, materials, and site location so underwriters can evaluate exposures accurately.
Frequently Asked Questions
Is builders risk insurance required by law?
No, it’s not legally required in all cases, but lenders or contract agreements often mandate it before construction starts.
Does builders risk insurance cover liability claims?
No, it typically covers property-related risks only. You may need general liability insurance for third-party injuries or damage.
Can I add subcontractors under my builders risk policy?
Some policies allow the inclusion of subcontractors, but it depends on the terms of your coverage. Always review your policy details.
When should I purchase builders risk insurance?
It’s best to secure coverage before construction begins to avoid gaps in protection.
Can builders risk insurance be extended if the project is delayed?
Yes, many insurers offer extensions, but you must request it before the original policy expires.
Still have questions? Talk to a local insurance expert.