While the construction industry generated $2 trillion in revenue in 2019, construction site liability risks continue to mount. A rising threat is from natural disasters. The years 2017 and 2018 were the costliest on record back-to-back, amounting to $237 billion in insured losses from natural disasters globally. In the United States in 2018, natural catastrophe losses ran to $58.5 billion. 

Course of Construction Insurance policies (COC) are vital to construction projects for damages that occur to the property, many of which are caused by natural disasters that show no sign of abating in the coming years. 

What is a Course of Construction Insurance Policy?

Course of Construction Insurance, sometimes known as Builder’s Risk Insurance, is a policy which specializes in protecting properties under construction from devastating financial losses. Common impacts that may be covered by your Course of Construction insurance policy are:


Fires can start for a variety of reasons, but despite the starting point, the destruction is all the same. With all the tools, paints, and other flammable materials, the worst can happen even on the safest of job sites. Losses from California’s tragic Camp and Woolsey wildfires amounted to $17.5 billion. 


Vandalism comes in many forms and can be from many different perpetrators. Spray paint, trash, debris, and broken property can be a minor inconvenience or a massive bump in the construction team’s road. Properties under construction are usually empty at night and a prime target for trespassers.


If materials were to go missing from a job site, the working schedule could be significantly delayed. Reordering parts or tools can take time and cost everyone involved money. Construction materials like copper and other equipment have become target items for thieves worldwide.


Wind speeds can pick up, sometimes at a moment’s notice. Wind can sweep up materials, blow away tarps, and ruin projects before they’re completed.  


Rain isn’t the only thing that can fall from the sky during a severe storm. Hail sizes can vary between being as small as a pebble to as big as a baseball. Depending on the area that you live, hail can cause significant damage to anything it comes in contact with. 


Being struck by lightning seems like a rare enough occurrence that many never worry about it; until that rare misfortune strikes. Lightning damages can be extreme and very costly to repair. 


An explosion can happen despite the best safety measures. Accidents occur, and sometimes the consequences can be critical.

Accidental Employee Property Damage

New or inexperienced employees can make mistakes or have poor judgment regarding tools and labor practices. Even seasoned employees are still capable of making mistakes. These mistakes can cost a company dearly if a COC policy is not purchased beforehand. 

Course of Construction Insurance exists to protect a building or a project which is under construction. The COC insurance policy may offer financial aid when it comes to the repair or replacement of property that was damaged during accidental or unavoidable incidents, like those listed above. 

It should be noted that a Course of Construction Insurance Policy does not cover the cost of the contractor’s tools, but the accidental damage that may be inflicted by them. Typically, COC insurance policies also do not cover business motor vehicles. To protect tools and company automobiles, it would be best to couple your Course of Construction Insurance Policy with a Tools and Equipment policy as well as a Commercial Auto insurance policy. 

Course of Construction Insurance Carriers

When looking for a Course of Construction Insurance policy, it’s essential to shop around for the policy and price that fits your needs best. At Meslee, we specialize in business insurance solutions and partner with the country’s top insurance companies to find the best policies for your business needs. 

We have three convenient locations throughout Los Angeles, making our expertise widely available wherever you’re planning to build in California, the most expensive state for construction. We work diligently to ensure that our full-service insurance brokerage is capable and that our knowledge and understanding of Course of Construction Insurance is extensive.

Do You Need a Course of Construction Insurance Policy?

Course of Construction Insurance Policies are beneficial for both developers and general contractors (when the general contractor is also charged with procuring insurance for property damage); that said, we believe it is always best for the developer or owner to carry and control the Course of Construction Policy and not rely on the General Contractor for this. Policyholders can appreciate the peace of mind that comes with their COC insurance purchase. Clients can rest assured that they or their contractor and construction team will have the funds to repair things that may be damaged during a build. 

A COC Insurance Policy promotes more positive client and contractor relationships, which is beneficial since 1.2 million new housing units are planned every year in the United States alone. 

Course of Construction Insurance Policies can be purchased by the company owner, the contractor, project manager, or engineer. When the policy is purchased for the job, the other affiliated parties can be covered. Subcontractors are commonly covered under the COC policy and fall within the “unnamed insureds” category. Your specific Course of Construction policy details should always be checked and well understood before a job begins. 

Protection and Peace of Mind with Meslee

Purchasing a Course of Construction Insurance Policy is the right idea for any construction business owner or project manager. Starting a construction project without holding a COC policy puts the entire company at financial risk. Course of Construction Insurance offers monetary security if an unexpected disaster takes place. 

Meslee Insurance Services work hand in hand with insurance carriers to provide reliable and comprehensive insurance policies that are made to fit all of their policyholder’s needs. Meslee offers insurance coverage that sets our client’s minds at ease. The insurance professionals at Meslee make their clients a priority by evaluating risk and personalizing protections.

To learn more about a Course of Construction Insurance Policy, contact the experts Meslee Insurance Services. Our licensed professionals will be happy to answer any questions you have.

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