Contractors and those they work with face several liabilities with each job. There are many types of insurance policies that can apply to their duties, but there are only a few that offer coverage for the projects or buildings that are involved in an incident. COC insurance or course of construction is also known as the builder’s risk coverage. As the team at SB One Insurance Agency advises, contractors or owners should purchase this policy if they want to protect a construction project from risks associated with:
- Unwelcome accidents
The Purpose of a COC
A course of construction policy is able to provide developers, general contractors, or owners peace of mind with their project. In the event of an incident that destroys or damages the building or structure, there is a guarantee of funds that can be used as the project is started over. A COC can cover several different parties, and although it can be obtained by either the owner, project manager, contractor, or engineer, it’s usually the contractor or owner that secure the policy.
With a COC policy, the named insureds are protected from having to pay for any losses at the job site out of their pockets. The insurance company provides the funds to the owner or contractor, making sure that the finances are there to finish the job in spite of the setback.