What is completed operations liability?

Completed operations liability refers to the potential exposure to liability that arises from work that has been finished. This concept is particularly relevant in industries like construction, where a contractor may be held liable for damages that occur after the work has been completed and handed over to the client. The essence of this liability lies in the fact that, even after a project is done, there can be defects, accidents, or other issues resulting from the work that lead to third-party claims.

This type of liability is crucial because it recognizes that a contractor can still be accountable for services or products provided in the past, especially if they lead to bodily injury or property damage after the fact. Proper insurance in this area protects businesses from the risk of these claims and supports financial stability should a legal issue arise related to completed work. The focus on "completed" work distinguishes this liability from ongoing operations or activities, emphasizing that issues can occur well after the job has ended.