What it means
The products and completed operations hazard in a general liability policy covers bodily injury and property damage that happens away from your premises and arises from your product or your work after it is completed. For contractors, this is where claims from finished jobs land.
Work is generally treated as completed when all work under the contract is done, when all work at the site is done, or when that part of the work is put to its intended use. Standard policies apply a separate products and completed operations aggregate to these claims.
Claims from completed work can arrive years later, so contractors often need to keep this coverage in force long after a job closes. Some policies limit or exclude completed operations for certain types of work, such as residential construction.
An example
Alder Plumbing replaced a water heater for a restaurant in January. In September a fitting fails and floods the dining room. Because the job is finished, the claim falls under Alder’s products and completed operations coverage and counts against that aggregate.
Names in this example are fictional.
See this term in your own contract.
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Get a free contract checkProducts and completed operations, answered
Do I need completed operations coverage after I close my business?
Possibly. Under an occurrence policy, coverage applies when the injury or damage happens, so a claim from old work after the policy lapses may not be covered. Contractors who retire or close sometimes buy discontinued operations coverage where available. A licensed broker can explain options for the work and state involved.
Is products and completed operations included in general liability?
Usually yes. Most commercial general liability policies include it with a separate aggregate. Some policies, especially for higher risk construction classes, exclude or limit it for certain work. Check the declarations and endorsements to confirm the aggregate amount and any exclusions before relying on it to meet a contract.
General information only. It is not legal or insurance advice. Only issued policy documents and endorsements describe actual coverage.