Products Completed Operations

The definition and meaning of products completed operations revolve around the risks faced by businesses that manufacture, distribute, sell, or provide services involving products or completed work. This coverage is typically included as part of a general liability policy to protect businesses from liability claims arising out of their products or completed operations.

Products completed operations coverage provides financial protection in two main areas: products liability and completed operations liability. Products liability refers to claims arising from injuries or damages caused by a product sold or supplied by a business. Completed operations liability, on the other hand, pertains to claims arising from injuries or damages caused by work or services that have been completed by a business.

For example, consider a furniture manufacturer. If a consumer purchases a chair and sustains an injury due to a defect in the chair’s design or manufacture, the manufacturer may be held liable for the damages. Similarly, if a construction company completes a building project and a structural issue arises, resulting in property damage or bodily injury, the completed operations coverage would respond to any resulting claims.

Products completed operations coverage helps protect businesses from costly lawsuits, medical expenses, and property damage claims resulting from their products or completed work. It can provide coverage for legal defense costs, settlement amounts, judgments, and other expenses associated with liability claims.

It is important for businesses to carefully review their insurance policies to ensure they have appropriate products completed operations coverage. The specific terms, limits, and exclusions may vary among insurance carriers and policies. Additionally, businesses should consider the nature of their products or services, the potential risks involved, and consult with insurance professionals to assess their coverage needs adequately.

In summary, products completed operations coverage refers to the insurance protection provided to businesses against liability claims arising from their products or completed work. It addresses potential damages or injuries caused by products sold or work performed by the insured. This coverage is a vital component of general liability insurance, safeguarding businesses from potential financial losses and legal expenses associated with products liability and completed operations liability.