Products-Completed Operations Coverage
Products-completed operations coverage protects your business when finished work or sold products lead to a claim. It covers the what-ifs that show up after the job is done. For example, if a customer says a bathroom fixture you installed caused a water leak in their home, products-completed operations insurance could help with the costs.
Call one of our expert agents or start a quote to learn more.
What is products-completed operations coverage?
Products and completed operations is a type of liability coverage that protects businesses from claims related to injuries or property damage after your work is finished or product is sold. This coverage is included with general liability insurance or a business owners policy (BOP).
What does products and completed operations insurance cover?
Products-completed operations insurance covers harm from products you manufacture, sell, or distribute after they leave your business. For example, if someone gets hurt riding a bike you sold because the brakes didn't work, this coverage could help cover the customer's medical bills.
It also covers injuries or property damage related to your completed work. Say a customer sues an electrician for a finished installation that later damaged a wall in their home. Completed operations liability can pay to fix the wall.
When the injury or damage happens away from your business premises, this coverage can help with the following:
- Medical bills
- Property reimbursement
- Legal fees
- Court costs
- Settlements
- Other legal expenses
What isn't covered by products and completed operations coverage?
This coverage doesn't apply to:
- Incidents at your office or business
- Issues during installation
- Existing injuries or property damage
- Product recalls
For instance, if a plumber scratches a customer's furniture while bringing tools inside, this coverage won't help because it occurred during the job. The same goes for slip and fall accidents at your office. Other protections on a general liability policy or BOP would cover these types of accidents.
Who needs product and completed operations liability?
Products and completed operations insurance coverage is a good fit for many types of businesses. It's especially important if you sell products or perform installation, maintenance, and repair work. Common examples include:
How much coverage do you need?
The amount of products and completed operations coverage your business needs depends on several factors, including:
- Industry and level of risk: Some professions, like contractors or manufacturers, are more likely to have claims. The greater your risk, the more coverage you need to stay protected.
- Value of products and services: Claims can have a bigger financial impact on expensive goods and services.
- Contractual obligations: In certain industries, like construction, it's common for contracts to tell you how much coverage you need and for how long.
Review your state laws and contracts to see if they require specific coverage limits. If you're unsure how much protection you need, give us a call. One of our in-house insurance experts can help you choose the right amount of coverage for your business.
Understanding claims-made vs. occurrence completed operations coverage
Most BOP and general liability policies are written on an occurrence basis, which means they cover products-completed operations claims as long as the incident happened while the policy was active. Even if the claim is reported later, the coverage still applies.
Claims-made policies work differently. They only cover claims that are reported while your policy is in place, unless you add features like a retroactive start date or an extended reporting period.
Read more about claims-made vs. occurrence policies to review your options.
Frequently asked questions about products-completed operations
Is products-completed insurance the same as product liability?
Not exactly. Products-completed operations coverage is a broader term that includes two kinds of protection: product liability and completed operations liability. Product liability helps if something you sell hurts someone or breaks something because it didn't work right. Completed operations helps if a job you did causes problems later on.
Both types of protection work together in what's called product-completed operations coverage, which is usually a part of your general liability policy or BOP.
Is product and completed operations coverage different from professional liability?
Yes, these are different coverages. Products-completed operations differs from professional liability in two main ways:
- Type of damage covered: Professional liability covers indirect harm if you make a mistake or give bad advice, like when a tax preparer makes an error that results in a customer receiving a fine from the IRS. Product and completed operations coverage relates to direct harm, like bodily injury and medical bills.
- How to get it: Products-completed operations is a standard part of a general liability policy or BOP. You can get professional liability as a standalone policy or as an optional add-on to a BOP.
How much does products-completed insurance cost?
The cost of this type of liability insurance depends on your business's level of risk. Insurers usually consider a variety of factors, such as:
- Industry
- Location
- Time in business
- Claims history
- Coverage needs
- Deductibles
The easiest way to find out how much a policy with products-completed coverage will cost is to get a quote personalized for your business.
How do I get products-completed operations coverage?
You can get products-completed operations coverage by purchasing a general liability or business owners policy. These types of business insurance include other helpful protections that can support your customers and growth. Review our general liability coverages and our BOP coverage guide to see what each policy includes.
When you're ready, you can buy insurance online or speak with an in-house agent.
Products-completed operations coverage with Progressive Commercial
We've been insuring small businesses like yours for over 50 years. Our online resources, in-house agents, and exceptional customer service make it easy to get the coverage and support you need — however you decide to buy.
Start an online quote or give us a call today to see how Progressive Commercial can keep your business safe.
