Insurance Topic
Completed Operations
A defined liability exposure related to bodily injury or property damage occurring after work has been completed or abandoned.
Definition
Completed operations refers to liability risk arising from products, services, or construction work after the work has been finished or abandoned, where subsequent injury or damage is alleged to result from the completed work.
Structural Characteristics
- Completed work status: Operations are finished or no longer in progress.
- Post-completion injury or damage: Harm occurs after the work is turned over.
- Causal connection: Alleged linkage between the completed work and the loss.
- Coverage trigger: Typically governed by occurrence-based liability forms.
Parameters & Conditions
- Applies only after operations are completed or abandoned.
- Subject to aggregate limits distinct from per-occurrence limits.
- Often governed by policy definitions of completion and acceptance.
- May be affected by exclusions, endorsements, or contractual liability terms.
Topic Relationships
Exceptions, Limitations & Boundaries
Completed operations does not apply to active, ongoing work and is limited by policy aggregates, exclusions, and defined completion criteria. Certain professional services or product defects may be excluded or governed under separate coverage forms.
Completed Operations: Definitional FAQ
When does completed operations exposure begin?
It begins when work is finished, abandoned, or put to its intended use, as defined by the policy.
Is completed operations the same as products liability?
They are related concepts; completed operations addresses work performed, while products liability focuses on manufactured or sold products.
Does completed operations cover faulty workmanship itself?
Generally, it addresses resulting injury or damage, not the cost to repair or replace the defective work.