For a $500,000 commercial TI project, is a COC / Builder’s Risk policy required, or is the general contractor’s CGL coverage sufficient?

For a 500K commercial TI in B.C., the GC’s CGL on its own is not equivalent to having COC/builders risk, and you are usually better off having builders risk/COC in place; a full wrap‑up liability policy is typically overkill at that size unless the project is unusually complex or required by landlord/lender.

How the GC’s CGL fits in

• CGL is third‑party liability coverage: it responds to bodily injury or property damage claims brought by others (e.g., landlord, neighbours, public) alleging negligence by the GC or its subs.

• Standard CGL wordings include “your work” and “care, custody, or control” exclusions that limit or remove coverage for damage to the contractor’s own work or property it is working on, which is exactly what you care about in a TI.

• Leases usually require the tenant to carry CGL (often 5M per occurrence) mainly to protect landlord and third parties, not to insure the improvements themselves.

So: GC CGL is necessary, but it does not protect the TI value if, for example, there is a non‑negligent fire or theft of materials.

What COC/builders risk does for your TI

• COC/builders risk is first‑party property coverage for the work in place, materials on site (and often in transit or temporary storage), and sometimes temporary works, against perils like fire, theft, vandalism, wind, etc.

• It pays even where no one can prove negligence, filling the main gap left by CGL and making sure the 500K of work and materials is actually insured during the build.

Practically, that can be either:

• An owner/tenant‑placed builders risk policy (naming GC and landlord as insureds), or

• A contractor‑placed builders risk or installation floater, with you and landlord shown as loss payees.

Where wrap‑up liability makes sense

• Wrap‑up is a project‑specific liability policy that brings owner, GC, and all subs under one CGL program to avoid gaps and overlaps.

• Canadian brokers position wrap‑up mainly for large or complex jobs with many subs and high values, not routine 500K TIs.

On a 500K TI, unless you have unusual complexity (multiple primes, high‑hazard occupancy, institutional owner mandates), a full wrap‑up is rarely justified on cost/admin grounds.

Practical setup for a 500K TI

What most owners/tenants in your situation aim for:

• GC CGL: at least 5M per occurrence, owner/tenant and landlord as additional insureds; confirm no odd exclusions killing premises‑related coverage.

• Builders risk/COC or installation floater: project value at 500K, covering TI work and materials, with appropriate insureds and loss payee language.

• Wrap‑up: only if mandated by landlord/lender or complexity justifies it; otherwise rely on GC CGL + builders risk.

Given you are working in Canadian construction, the final call should tie back to your lease insurance clauses, lender conditions (if any), and the CCDC/contract terms with the GC, ideally with a local construction insurance broker sanity‑checking the structure.