Understanding Completed Operations Liability Coverage: Key Insights

Definition & Meaning

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.

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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.

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.

Quick facts

  • Coverage applies after work is completed.
  • Protects against claims of bodily injury and property damage.
  • Incidents must occur away from the insured's premises.
  • Important for contractors and subcontractors.

Key takeaways

Frequently asked questions

It protects against claims for bodily injury and property damage that occur after work has been completed.