Products-Completed Operations Coverage
What Is Products-Completed Operations Coverage?
Product-completed operations coverage is designed for things that go wrong after you’ve done your job. It’s a two-in-one coverage for the products you sell and the services you provide if they accidentally hurt a customer or damage their property.
Think of it as “insurance for later.” You may have done everything by the book, but if your work doesn’t hold up, this coverage is designed to pay to make things right with your client.
You may also see this coverage called:
- Completed operations coverage
- Products completed operations coverage
- Products-completed operations coverage
- Products and completed operations coverage
There are many variations of the name, but the point is: it’s coverage for surprise claims that may pop up after your work is done.
What Does Products-Completed Operations Coverage Cover?
Product-completed operations coverage covers:
- Claims related to the products you make, sell, or distribute
- Claims related to the completed services you provide
Here’s a breakdown of when it applies.
Ongoing Operations vs Completed Operations Coverage
| Coverage Type | When It Applies | Example | Covered? |
|---|---|---|---|
|
Ongoing Operations |
While you’re actively working on the job |
Lawn Care: You’re mowing a lawn and a rock flies out, breaking a window. |
✔️ Yes |
|
Products-Completed Operations |
After the job is finished and you’ve left |
Lawn Care: A sprinkler timer you installed malfunctions days later, flooding the yard. |
✔️ Yes |
|
Not Covered |
Damages unrelated to your work or after coverage lapses |
Lawn Care: A storm damages the yard weeks later, unrelated to your work. |
❌ No |
For certain business types, the extra products you sell on top of your main services may not be covered by this coverage, especially if the products are considered higher risk. For example, if you’re a hair stylist and you sell your own hair oil product to clients, you’d need separate product liability coverage to protect yourself if that product caused any harm.
Is It Important to Have Products-Completed Operations Coverage?
No matter how careful you are, your work always has the potential to cause others harm. That’s why it’s essential to carry products-completed operations coverage — there’s no guarantee your product won’t malfunction or your installation won’t falter once it’s out of your hands!
This coverage gives you peace of mind once you sign off on a completed job, knowing you’re protected if something doesn’t work out after the fact.
Plus, some business contracts require proof of this coverage before bringing you on. This shows you can take financial responsibility if something goes wrong with your products or services afterward.
What Are Examples of Completed Operations Claims?
Any small business can face a completed operations claim. Here are some examples:
- An artist’s handmade product injures a customer after they take it home
- A cleaning professional’s carpet cleaning service causes mold growth weeks later
- A photographer’s pop-up photo booth setup collapses and injures passersby after an event
Is Completed Operations Coverage Included in General Liability?
Yes, products-completed operations coverage is typically included in your general liability policy. It’s a specific protection under general liability with its own aggregate limit (total coverage amount available).
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