In Canada, the construction industry continues to be a major economic driver, with billions of dollars invested annually in new residential, commercial, and infrastructure projects. According to the Canadian Construction Association (CCA), the industry contributes approximately $162 billion to Canada’s economy each year, representing about 7.5% of the country’s GDP. With investments of this scale, Course of Construction (COC) insurance is more than a safeguard, it is an essential part of protecting projects from unexpected losses and delays. (1)
The construction sector remains one of Canada’s largest employers, supporting more than 1.6 million jobs across the country. Recent data from Statistics Canada shows that investment in building construction reached $23.4 billion in May 2026 alone, reflecting continued demand for residential and non-residential development. (2) As construction activity remains strong, insurance brokers play an increasingly important role in helping clients manage risk and protect their investments throughout every stage of a project. In this guide, we’ll explore the fundamentals of Builder’s Risk insurance, also known as Course of Construction (COC) insurance, and how it helps safeguard projects from groundbreaking to completion. (3)
What is Course of Construction (COC) Insurance?
Course of Construction (COC) insurance is a specialized type of property insurance designed to protect buildings under construction. It covers the structure, materials, and equipment against various perils such as fire, theft, and vandalism. Think of it as a comprehensive safety net for your client’s project, ensuring that unexpected events don’t derail their progress.
How Does Course of Construction Insurance Differ from Builder’s Risk Insurance?
COC insurance and Builder’s Risk insurance are essentially the same, with the terms used interchangeably. The minor differences in terminology often depend on regional or industry-specific usage. As a broker, it’s crucial to clarify this for your clients, so they understand that both terms refer to the same type of coverage.
How Does COC Insurance Work?
COC insurance works by covering buildings or projects against repair or reconstruction costs during construction. It typically includes coverage for building materials, fixtures, and appliances. For instance, if a fire breaks out halfway through a project, COC insurance steps in to cover the repair costs, allowing the project to continue without major financial setbacks.
Who Purchases Course of Construction Insurance?
Typical purchasers of COC insurance include property developers, contractors, and project owners. The responsibility for purchasing the insurance is often specified in the construction contract. As a broker, you should advise your clients to review their contracts carefully to determine who is responsible for obtaining this essential coverage.
When Does a Company Need COC Insurance?
Companies need COC insurance to cover damage to the property being constructed Lenders often require this insurance to protect their investments during the construction phase. If your client is taking out a loan for their project, ensure they understand that COC insurance will likely be a requirement.
Why Does a Contractor or Business Need COC Insurance?
COC insurance is vital for protecting against significant financial losses and liability claims. It safeguards construction projects from unforeseen risks and accidents. Emphasize to your clients the peace of mind that comes with knowing their project is protected, allowing them to focus on completing the work without worrying about potential financial setbacks.
What is Covered by a COC Insurance Policy?
COC insurance policies typically cover a range of perils, including fire, theft, vandalism, and natural disasters. Here are two scenarios where having COC insurance would be advisable:
- Scenario 1: A contractor is building a new commercial office space. Midway through the project, a fire breaks out, causing significant damage. COC insurance would cover the repair costs, ensuring the project can continue without major financial setbacks.
- Scenario 2: A developer is constructing a new residential housing complex. During the framing stage, a severe storm causes extensive wind and water damage to the structures. Builder’s risk insurance would cover the repair costs, allowing the project to proceed without major financial losses.
About SWG Construct
At SWG, we specialize in providing tailored commercial insurance solutions for the construction industry. Our team of experts understands the unique risks associated with construction projects and offers comprehensive coverage to protect your clients’ investments. Whether they’re building a new commercial or residential space, SWG Construct has them covered. Learn more about it here. In the world of construction, unexpected events can derail even the best-laid plans. That’s why having Course-of-Construction insurance is crucial. It provides the financial protection your clients need to keep their projects on track, no matter what comes their way. So, don’t wait—get the coverage they need and build with confidence! Ready to protect your clients’ construction projects with the best insurance coverage? Reach out to SWG’s underwriting team for more information about SWG Construct. We’re experts at specialized and tailored commercial insurance solutions, and we’re here to help you every step of the way.
* Content is current as of the date of broadcast and is subject to change without notice.
* * Insurance coverage availability may differ between provinces.
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