Products and Completed Operations Coverage
Products and completed operations coverage is the part of a general liability policy that protects a business against claims of bodily injury or property damage caused by a product it sold or work it finished, after that product or job has left the business's control. It's what protects a manufacturer if a product fails months after sale, or a contractor if a finished renovation causes damage down the road. The Allen Thomas Group makes sure this coverage's aggregate limit and exclusions actually match how long clients' products or work stay in use.
Products Liability vs. Completed Operations
| Type | Trigger |
|---|---|
| Products Liability | A defective product causes harm after it has been sold or distributed |
| Completed Operations | Finished work causes harm after the job has been completed and the crew has left the site |
How It's Different From Ongoing Operations Coverage
A general liability policy's coverage for ongoing operations applies while work is actively in progress, like an electrician's crew wiring a building. Products and completed operations coverage picks up after that: once the electrician has left the job site and a wiring defect causes a fire six months later, that claim falls under products and completed operations, not ongoing operations.
Why the Aggregate Limit Matters
Products and completed operations coverage typically has its own separate annual aggregate limit, distinct from the general aggregate that applies to other liability claims. Businesses with long-tail exposure, like construction firms whose work can cause problems years later, or manufacturers whose products stay in circulation, can exhaust that specific aggregate across multiple unrelated claims within a single policy year, which is exactly the scenario a commercial umbrella policy is designed to sit on top of and absorb.
How The Allen Thomas Group Can Help You
We'll help you understand exactly how products and completed operations coverage affects your coverage and cost, then shop your policy across 15+ A-rated carriers to find the right fit.
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