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Completed-Operations Policy: Key Insights and Legal Implications
Definition & Meaning
A completed-operations policy is a type of insurance designed to protect contractors from liability for accidents that occur after a project is finished. This policy is particularly relevant for building contractors, as it covers incidents that arise from their work once they have completed their operations. The underlying principle is that contractors have a responsibility to ensure their projects are safe and free from hazards that could cause harm to others.
Table of content
Legal Use & context
Completed-operations policies are commonly used in the construction industry and fall under the broader category of liability insurance. These policies are essential in civil law contexts, particularly in cases involving personal injury or property damage claims. Contractors may utilize legal templates from US Legal Forms to draft contracts or agreements that outline their insurance coverage and liability responsibilities.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A contractor completes a building renovation. Several months later, a structural failure leads to an injury. The completed-operations policy would cover the contractor against claims arising from this incident.
Example 2: A contractor installs a new roof. After the project is finished, a leak causes water damage to the homeowner's property. The homeowner files a claim against the contractor, which would be addressed under the completed-operations policy. (hypothetical example)
State-by-state differences
State
Key Differences
California
Requires specific disclosures in insurance policies.
Texas
Allows for certain exclusions that may not be permitted in other states.
New York
Mandates higher liability limits for construction projects over a certain size.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
General Liability Insurance
Covers a wide range of liabilities, including completed operations, but also other areas like bodily injury and property damage during the project.
Professional Liability Insurance
Specifically protects against claims of negligence in professional services, unlike completed-operations policies which focus on physical work completed.
Common misunderstandings
What to do if this term applies to you
If you are a contractor, consider obtaining a completed-operations policy to protect yourself from potential liability after completing a project. Review your insurance needs and consult with an insurance professional to ensure you have adequate coverage. Users can also explore US Legal Forms for templates and resources to help manage their insurance documentation effectively. If your situation is complex, seeking legal advice may be beneficial.
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