Products & Completed Operations Insurance
What Does Products & Completed Operations Insurance Mean?
Products and Completed Operations Insurance is a type of liability policy that covers damage after a project has been completed. This policy is usually purchased by contractors and absolves them of financial claims from a third party.
Insuranceopedia Explains Products & Completed Operations Insurance
Even after a contractor has finished a project, they may still be liable for damages or injuries that are caused by the project. A cabinet they made, for example, might not be quite sturdy enough and falls on someone, injuring them. Or a roof they built might leak, causing damage to property—never mind that the roof was built five months ago.
Circumstances like this are what make a Products and Completed Operations policy so helpful. This policy allows the contractor to transfer the risk to the insurer should their past project be involved in this kind of incident.