Products-Completed Operations Liability in a Commercial General Liability Insurance Policy is an important CGL Insurance Policy Coverage most often utilised by Construction Companies.
A Commercial General Liability Insurance Policy usually defines Products-Completed Operations as the following:
Includes all bodily injury and property damage occurring away from premises owned or rented by the Insured and arising out of Insured’s product or Insured’s work except:
1. Products that are still in the Insured’s physical possession; or
2. Work that has not yet been completed or abandoned. However, Insured’s work will be deemed completed at the earliest of the following times:
-> When all of the work called for in the Insured’s contract has been completed.
-> When all of the work to be done at the job site has been completed if the Insured’s contract calls for work at more than one job site.
-> When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or subcontractor working on the same project
What are the Coverages under the Products-Completed Operations part of Commercial General Liability Insurance Policy?
One of the primary CGL Policy Coverage is that of Bodily Injury and Property Damage on Business Premises.The Products-Completed Operations Coverage in a CGL Insurance Policy pays for the legal expenses and compensatory damages awarded by the courts for any claims of bodily injury or property damages suffered by third parties as a result of Insured’s Products or Insured’s faulty work or service occurring away from the business premises.
Completed Operations Cover is very important for construction companies which work and complete projects at different locations, and it is also applicable to companies which install machinery at the client premises
What are the benefits of Completed Operations Coverage in a Commercial General Liability Insurance Policy?
The major benefits of Completed Operations Coverage in a CGL Insurance Policy are as follows:
-> Peace of Mind: Completed Operations Coverage in a CGL Insurance Policy will give peace of mind to the contractor that they are well protected in case an incident happens which involves their projects.
-> Fulfill Contractual Requirements: Many principals require contractors to avail Completed Operations Coverage for their projects. The Contractors need to avail Completed Operations Coverage in their CGL Policies to fulfil Contractual Requirements.
What is Limit for Products-Completed Operations in a Commercial General Liability Insurance Policy?
A CGL Insurance Policy has a separate limit for Products-Completed Operations Limit. The limit is specified as a Per Occurrence Limit and Aggregate Limit. You can read our detailed Blogpost on various Limits in a Commercial General Liability Insurance Policy.