Comprehensive Guide to Course of Construction Insurance Canada

Protect Your Build with Summit

Construction projects - whether residential, commercial, or industrial - represent significant investments of time, money, and resources. But during the building process, your project is vulnerable to a range of risks: fire, theft, vandalism, severe weather, and more.

That’s why Course of Construction insurance (also known as a Builder’s Risk policy) is essential.
At Summit, we offer customized construction insurance solutions that protect your project from blueprint to completion.

What Is Course of Construction Insurance?

Course of Construction Insurance is temporary insurance coverage designed specifically for properties under construction, renovation, or major repair.

It protects the insured value of the work in progress, including materials, labour, and equipment, against physical loss or damage during the build.

Without it, unexpected events could cause devastating financial setbacks, delay completion, or even halt your project altogether.

Also called:

• Builder’s Risk Insurance
• Construction All-Risk Insurance

What Does Course of Construction Insurance Cover?

A well-designed Course of Construction policy should provide protection for:

1. Buildings Under Construction

Covers the partially completed structure itself - whether it’s a residential home, condo, commercial building, or industrial project.

Example: A fire breaks out in a partially completed office building. Your policy covers the repair and reconstruction costs.

2. Onsite Materials and Supplies

Covers building materials, supplies, and fixtures that are stored on-site for use in the project.
(Extensions are often available for materials in transit or stored offsite.)

Example: A shipment of kitchen cabinets is damaged by a sudden rainstorm before installation. Covered.

3. Labour and Soft Costs

Some policies can include coverage for soft costs like:

• Permit reapplication fees
• Architect/engineering redesign fees
• Legal expenses
• Loan interest expenses during project delays

Example: A major theft causes project delays, leading to additional loan interest payments. Soft cost coverage helps reimburse these extra expenses.

Temporary Structures

Covers temporary installations like scaffolding, construction forms, hoardings, site trailers, and fencing if they are damaged by an insured peril.

Tools and Equipment (Optional)

You can often add coverage for contractors' tools, construction equipment, and machinery — either owned or rented.

Example: A theft overnight results in stolen compressors and generators. With the right extension, replacement costs are covered.

What Are Common Insured Perils?

Included Events Examples:

- Fire or explosion

- Electrical fires, gas leaks

- Theft or vandalism

- Break-ins, stolen materials

- Windstorm or hail

- Severe weather damage

- Water damage (limited)

- Burst pipes, rain damage (note: flooding can be excluded)

- Partial or total structural collapse due to external force

Important:
Flood, earthquake, equipment breakdown, and contractor errors are typically excluded unless specifically added.
Talk to Summit about customizing the right endorsements for your project.

Why Canadian Builders Need Course of Construction Insurance

Without proper coverage, a major loss during a construction project could be catastrophic. You could face:

• Major unexpected repair costs
• Significant project delays
• Breach of contractual obligations
• Loss of financing (many lenders require COC insurance)

In Canada, where extreme weather and seasonal risks are real concerns, protecting your project during every phase of construction is critical.

Who Should Carry the Policy?

The party purchasing the Course of Construction insurance is often determined by the contract, but typically it’s:

• The property owner or developer
• The general contractor (in some cases)
• A construction manager on behalf of the owner

Tip:
Even if your contractors carry their own liability or equipment insurance, the property owner should have Course of Construction insurance to cover the structure itself and the project’s total value.

When Should You Get Course of Construction Insurance?

Before construction starts.
Coverage needs to be in place before any work begins — including site clearing or demolition.
Waiting until after construction starts can leave you exposed or cause issues with your financing.

Most policies last 12 months - 24 months initially and can be extended if the project runs longer.

What Factors Impact the Cost of Course of Construction Insurance?

Several factors influence the premium, including:

• Project value (labour + materials + design fees)
• Type of project (new construction, renovation, rebuild)
• Construction type (wood frame, steel frame, concrete, etc.)
• Location and regional risks (urban, rural, floodplain, wildfire zone)
• Security measures (fencing, site surveillance, alarms)
• Duration of the project
• Claims history (if applicable)

💡 Pro Tip:
Projects using fire-resistant materials (like concrete or steel) often qualify for lower premiums than wood-frame construction.

Additional Coverages to Consider

Depending on your project scope, Summit may recommend additional coverage:

Wrap-Up Liability Insurance: Project-wide liability coverage for all contractors and subcontractors working on-site.

‍Equipment Breakdown: Protects against mechanical failure of critical construction equipment.

‍Contractors Pollution Liability: Covers pollution incidents like spills or hazardous material exposure during construction.

‍Earthquake or Flood Endorsements: Needed for projects in high-risk geographic areas.

Why Choose Summit for Your Course of Construction Insurance?

At Summit, we understand that construction projects are complex — and no two are the same.
Our approach combines deep industry expertise with modern, tech-enabled service to deliver exactly what your project needs.

Custom Solutions
We tailor your insurance based on the specific needs and risks of your project — no cookie-cutter coverage here.

Speed and Simplicity
Our streamlined quoting and binding process gets you covered fast, so you can break ground with confidence.

Top Canadian Insurer Access
We partner with Canada’s top-rated insurance carriers to offer competitive premiums without sacrificing coverage quality.

Ongoing Support
Construction is dynamic. If your project scope changes, Summit is ready to adapt your policy to keep you fully protected.

Start Your Project on Solid Ground

Before you break ground, build a solid foundation with Summit.
Our Course of Construction insurance solutions are designed to protect your investment — and your vision — until the day you hand over the keys.

Contact us today or hit the "get a quote" button to get a personalized Course of Construction insurance quote.
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‍Let's protect your build — and your bottom line.

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