The course of Construction policies are designed to protect a construction project above and beyond the coverage of general liability insurance. Two options exist for COC insurance. The choice between a COC extension to general liability insurance or a stand-alone policy has implications for the risks to a contractor during the course of construction.
Benefits to a Stand-Alone COC Policy
Stand-alone COC insurance provides a contractor with more control over coverage for a construction project, as more options are provided than what can be found in general liability extensions. According to SB One Insurance, COC policies can be tailored to meet company and project requirements, and are dependent on project risk factors, the company claims history and project scope. Benefits to stand-alone COC insurance over-extensions include options to cover:
- Loss of equipment stored on site
- Damage or loss due to natural hazards
- Property damage or loss from fires, theft, or vandalism
- Losses incurred in the process of testing equipment
Any construction project incurs multiple risks over the course of construction that are not covered under general liability insurance or COC insurance extensions. To ensure that an entire project is covered, a stand-alone COC policy is an option that provides a contractor with the greatest amount of control over coverage and costs.