What is Products-Completed Operations Coverage in CGL Insurance Policy?

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

Essentially, Products-Completed Operations Liability Coverage in a Commercial General Liability Insurance Policy provides protection in case the Insured Person gets sued because of bodily injury or property damage caused to a 3^rd Party due to using the Insured’s Products or as a result of Insured’s faulty work or service.

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.

However, Products-Completed Operations Coverage in a CGL Insurance Policy basically covers Bodily Injury or Property Damage occurring because of the Insured’s Products or Insured’s Service and the incident which causes bodily injury or property damage takes place away from the business premises owned or rented by the Insured.

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.

 The important point to remember is that Completed Operations coverage relates to projects which have been already completed and not cover projects which are a work in progress.

 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.

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Qian is a licensed insurance broker for Commercial General Liability Insurance Policy.

Our liability insurance team will explain the CGL Insurance Policy Exclusions and CGL Policy Coverages in detail so that your business gets comprehensive coverage for claims of bodily injury and property damage.

The Commercial General Liability Insurance Cost is also very reasonable, and every business should purchase a Commercial General Liability Insurance Policy.

If you have any queries regarding a Commercial General Liability Insurance Policy, email us at insurance@qian.co.in or call us on 022-22044989.

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8. What are the Coverages under the Personal and Advertising Injury Liability section of a Commercial General Liability Policy?
9. What does the Medical Payments Section of a Commercial General Liability Insurance Cover?
10. What are the exclusions under a Commercial General Liability Insurance Policy?
11. Will my Commercial General Liability Insurance Policy Cost be higher if I purchase the Policy through an Insurance Broker?
12. Get a FREE 1 Hour Consultation for your Commercial General Liability Insurance Policy