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Completed operations liability coverage is a type of insurance that protects businesses from claims related to bodily injury and property damage that occur after a job has been completed or abandoned. This coverage is important for contractors and subcontractors, as it applies to incidents that happen away from the insured's premises. For coverage to apply, specific conditions must be met, such as the completion of all contracted work or when the work has been used by someone other than the contractor.
Table of content
Legal Use & context
This term is commonly used in the context of liability insurance within civil law. It is particularly relevant for construction and contracting businesses, where the risk of claims arising from completed work is significant. Users can manage their coverage needs through legal forms and templates offered by services like US Legal Forms, which can help ensure they have the appropriate insurance documentation in place.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
(Hypothetical example) A contractor finishes building a deck for a client. After the job is completed, a visitor slips on the deck and injures themselves. If the incident occurs away from the contractor's premises, the completed operations liability coverage may apply.
State-by-state differences
Examples of state differences (not exhaustive):
State
Coverage Variations
California
Strict liability rules may apply in certain cases.
Texas
Coverage may vary based on state-specific regulations.
Florida
Additional requirements for contractors regarding insurance limits.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
General Liability Insurance
Covers a broad range of claims, including bodily injury and property damage.
General liability includes ongoing operations, while completed operations focuses on work that has been finished.
Professional Liability Insurance
Covers claims of negligence or malpractice in professional services.
Professional liability is specific to professional services, while completed operations pertains to physical work completed.
Common misunderstandings
What to do if this term applies to you
If you are a contractor or subcontractor and this coverage applies to your situation, consider reviewing your insurance policy to ensure you have adequate completed operations liability coverage. You can explore ready-to-use legal form templates from US Legal Forms to help manage your insurance documentation. If your situation is complex, consulting a legal professional may be advisable.
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