Completed Operations

Overview

Completed operations coverage protects a contractor or service provider against liability claims that arise after their work has been finished and the project has been turned over to the owner or client. This coverage is a subset of the Products-Completed Operations aggregate found on a Commercial General Liability (CGL) policy. It addresses the risk that defective workmanship, faulty installation, or negligent services cause bodily injury or property damage after project completion.

How It Works

Under a standard CGL policy, there are two main categories of coverage triggers: premises/operations (for claims arising during active work) and products-completed operations (for claims arising after work is done). Completed operations specifically covers the latter.

A contractor's work is generally considered "completed" when:

• All work under the contract has been finished
• The work has been put to its intended use
• The contractor has abandoned the project (even if not finished)

Once work reaches this status, any resulting claims fall under the completed operations coverage rather than the premises/operations coverage. The products-completed operations aggregate limit applies to these claims, which is separate from the general aggregate limit.

For example, if an electrical contractor finishes wiring a building and a fire starts six months later due to faulty wiring, the completed operations coverage would respond to claims from that fire.

Compliance Relevance

Completed operations coverage is essential in construction and real estate COI compliance. Many contracts require vendors to maintain completed operations coverage for a specified period after project completion — often two to ten years. This is because construction defects frequently manifest long after the work is done.

Key compliance checkpoints include:

• Products-completed operations aggregate limit: Verifying it meets the contractual minimum
• Ongoing coverage requirement: Ensuring the vendor maintains the policy even after work is complete
• Per-project aggregate: Some contracts require a dedicated aggregate for each project, protecting the certificate holder from limit exhaustion by claims on other projects

Compliance platforms should track not only active project coverage but also post-completion obligations to ensure vendors maintain coverage through the required period.