insurance

Completed Operations

Insurance coverage that protects contractors and service providers from liability claims arising from their work after it has been finished and they have left the job site. This coverage addresses injuries or property damage that occur due to faulty workmanship or materials discovered after the project is completed.

Example

“The electrician's completed operations coverage paid for damages when faulty wiring he had installed six months earlier caused a house fire.”

Memory Tip

Completed Operations = 'Complete, Oops!' - coverage for when problems with your completed work go 'oops' later on.

Why It Matters

This coverage protects contractors from potentially devastating lawsuits that can arise years after completing a job, when faulty work causes significant property damage or injuries. Without completed operations coverage, contractors could face personal financial ruin from claims related to past projects.

Common Misconception

Many contractors believe their general liability insurance automatically ends when they finish a job, but completed operations coverage specifically extends protection beyond job completion. Some also mistakenly think this coverage lasts forever, when it typically has time limits and may require extended reporting period endorsements for long-term protection.

In Practice

A roofing contractor completes a $15,000 roof replacement in January. Eight months later, the roof leaks during a storm, causing $85,000 in water damage to the home's interior and belongings. The contractor's completed operations coverage within their general liability policy pays the $85,000 claim, even though they hadn't been on the property for months and the damage wasn't discovered until after the work was complete.

Etymology

Combines 'completed' from Latin 'completus' meaning finished, with 'operations' from Latin 'operatio' meaning work or activity, referring to work that has been finished and handed over to the customer.

Common Misspellings

completed operatonscomplated operationscompleted opperationscompletted operations

Related Terms

General Liability Insurance

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