What is COC/Commercial and Residential?
Course of Construction (COC), often called builder’s risk, is a property insurance form that protects buildings, materials, and temporary structures while they are under construction, renovation, or addition. It combines elements of property coverage and equipment coverage to address losses from fire, theft, vandalism, and some weather events. Underwriting factors and common liability exposures are considered when insurers set terms and limits.
Who needs it
COC is typically purchased by general contractors, subcontractors, developers, owners, and homeowners doing major remodels or add-ons. Smaller project operators and trade contractors can also benefit from tailored coverage to protect materials on site and specialized tools. For projects that involve homeowner renovations, consider reviewing options like Homeowners Course of Construction (COC) Insurance — Remodels & Add-Ons to see how coverage can be adapted to smaller jobs: https://completemarkets.com/Homeowners-COC---for-remodel-and-or-add-ons-Insurance/Storefronts/
What it typically covers
Standard COC policies usually cover:
- Buildings under construction and permanent fixtures
- Building materials, supplies, and equipment on-site or in transit
- Temporary structures like scaffolding and fencing
- Soft costs such as certain interest payments or permitting delays (if endorsed)
Policies can be extended to address commercial liability exposures, protection for rented equipment, and similar needs. For a general overview of commercial and residential project options, see Safeguard Your Projects with COC-Commercial and Residential Insurance: https://completemarkets.com/COC-Commercial-and-Residential-Insurance/Storefronts/
Common exclusions or limitations
COC policies commonly exclude losses from war, wear and tear, faulty workmanship (unless endorsed), and certain types of mold or pollution damage. Damage to tools owned by subcontractors, latent defects, and losses arising from poor maintenance are often limited. Read policy exclusions carefully and discuss potential endorsements to fill gaps.
Factors that influence cost
Premiums depend on project value, construction type, project duration, location, security measures, and the contractor’s loss history. Projects with high-value materials, substantial equipment exposure, or operations in areas prone to severe weather will generally face higher premiums. Insurers also consider risk management practices, such as on-site security and safety programs, when underwriting.
Proof of insurance & compliance
Owners and general contractors frequently require certificates of insurance and specific additional insured endorsements before work begins. Certificates demonstrate coverage limits and policy effective dates, while endorsements clarify who is protected and for what exposures. Keep documentation up to date to meet lender, owner, and permit requirements.
How to get a quote
To get a quote you’ll typically need the project address, estimated completed value, construction type, scheduled start and completion dates, and a list of parties to be named on the policy. You can also explore specialized builder’s risk programs and commercial property options; for example, Course of Construction (COC) Insurance (Builder's Risk) provides more detail on typical forms and endorsements at https://completemarkets.com/COC-Insurance/Storefronts/. Request a quote at https://completemarkets.com/quote/ to start the application process.
Risk scenario: a loaded delivery trailer is stolen from an unsecured site, causing material replacement costs and schedule delays—proper COC and equipment coverage can address both property loss and resulting soft costs.
Frequently Asked Questions
When should I buy COC insurance?
Purchase COC before construction starts or before materials arrive on site; many lenders and owners require proof of coverage at contract signing.
Does COC cover subcontractors’ tools?
Not typically—coverage for subcontractors’ tools usually requires separate policies or endorsements. Verify with your insurer which items are included.
Can coverage be extended for materials in transit?
Yes. Many policies include or allow endorsements for materials in transit or stored off-site, but you should confirm limits and conditions with the carrier.
Still have questions? Talk to a local insurance expert.