Covers all property being incorporated into a project during the construction phase. It is designed to protect against direct physical loss or damage to a project as well as construction material waiting to be installed onsite, in transit or offsite.

This type of policy is recommended for all types of projects including: 

• Residential new builds
• Renovations
• Commercial buildings
• Industrial buildings
• Civil buildings and projects (i.e. bridges, dams, etc.)

Common Exclusions

Course of construction insurance is designed to cover damage caused by accidents, not faulty or improper material, workmanship or design. Other common exclusions include liability for property damage or bodily injury to third parties (covered under wrap-up liability insurance usually purchased for each project), equipment breakdown, work vehicles (which are covered under separate policies), employee theft as well as contractors’ equipment and tools.

Warranties

It’s critically important to be aware of any warranties in your policy wording. Common warranties for wood frame projects include having requirements for fencing, security, fire extinguishers, open flame or hot works procedures​, etc. Breach of a warranty voids your insurance coverage.

Equipment Breakdown

This coverage pays for sudden and accidental damage to mechanical or electrical machinery or equipment, commonly excluded in course of construction policies. It will also pay for repair or replacement, and is particularly important during the testing and commissioning phases.

Delayed Opening/Start-up

This coverage can be purchased in addition to a course of construction policy. It provides coverage for financial losses as a result of project delays caused by covered losses, which can include increased interest on financing, increased labour costs, and loss of anticipated rental income or revenue.