Products & Completed Operations Insurance
What Does Products & Completed Operations Insurance Mean?
Products and Completed Operations Insurance is a type of liability policy that covers damage occurring after a project has been completed. Typically purchased by contractors, this policy protects them from financial claims made by third parties.
Insuranceopedia Explains Products & Completed Operations Insurance
Even after a contractor has completed a project, they may still be held liable for damages or injuries caused by the work. For instance, a cabinet they built might not be sturdy enough and could fall on someone, causing injury. Or a roof they installed might leak, resulting in property damage—even if the roof was built several months ago.
Situations like these highlight the importance of a Products and Completed Operations policy. This coverage allows the contractor to transfer the risk to the insurer if their previous project is involved in such an incident.
