Insurance Topic
Products Completed Operations Liability
Products completed operations liability is a component of general liability insurance that applies to bodily injury or property damage occurring away from the insured’s premises and after products have been sold or work has been completed.
Definition
Products completed operations liability refers to the coverage grant within a commercial general liability policy that addresses legal liability arising from defects in manufactured, distributed, or sold products, or from work that has been finished and put to its intended use. The coverage responds when injury or damage occurs after the insured no longer has physical possession of the product or control over the completed work.
Structural Components
- Inclusion within a general liability insurance policy, typically subject to a separate aggregate limit.
- Application to both product-related liability and completed operations exposures.
- Trigger based on bodily injury or property damage as defined in the policy form.
- Subject to applicable insurance limits, deductibles, and exclusions.
Parameters & Conditions
- The product must be relinquished to a third party, or operations must be deemed complete under the policy definition.
- The injury or damage must occur during the policy period under an occurrence-based form, as distinguished from claims-made vs occurrence structures.
- Coverage applies only to damages that qualify as covered bodily injury or property damage under the insuring agreement.
- Professional services exposures may fall under professional liability insurance rather than products completed operations liability.
Topic Relationships
Exceptions, Limitations & Boundaries
- Does not apply to damage to the insured’s own product or work where excluded by policy provisions.
- Excludes certain recall-related costs, which may require specialized coverage.
- Does not replace coverage for ongoing operations, which are evaluated separately within the general liability structure.
- Subject to exclusions outlined in the policy, including certain contractual or intentional acts.
Products Completed Operations Liability: Definitional FAQ
What is considered “completed operations”?
Completed operations refers to work that has been finished according to the contract or put to its intended use, after which the insured no longer controls the worksite.
Does this coverage apply to manufacturing defects?
Yes, if a manufactured or distributed product causes covered bodily injury or property damage after it has left the insured’s possession, the products component may apply subject to policy terms.
Is products completed operations liability separate from general liability?
It is not a standalone policy by default but a coverage part within a general liability policy, often subject to its own aggregate limit.