Course of Construction and Wrap Up Liability Insurance

For construction projects exceeding $1 million, a Course of Construction (COC) or Builder's Risk policy and Wrap Up Liability insurance are essential. The COC policy covers buildings or projects under construction, including repair and installation costs, as well as building materials and fixtures. On the other hand, Wrap Up Liability provides third-party liability coverage for all trades, subtrades, engineers, and architects involved in the project, eliminating the need for individual certificates of insurance from each trade. This coverage also includes Completed Operations, protecting against liabilities arising from incorrect installations even after the project is completed.

Having COC and Wrap Up Liability insurance prevents construction-related losses from affecting the strata's policy, ensuring that any claims or liabilities arising from the construction project are directed to the appropriate insurance coverage. This separation is beneficial for the strata as it protects its loss history.