Completed Operations
Completed operations refers to liability coverage for bodily injury and property damage that arises only after work performed by the insured has been finished and accepted.
Concept
Under a general liability policy, completed operations refers to the coverage component that applies to bodily injury and property damage arising only after work performed by the insured under a contract has been completed, made available for use at a site, or can be considered fit for its intended purpose. In contrast to ongoing operations, this coverage component therefore specifically addresses losses that manifest only after the work has been finished and accepted.
Practical Significance
This extended liability is of central importance for trades, construction firms, installation and assembly companies, and service providers, since defectively performed work – such as faulty electrical wiring or an improperly installed component – often results in a loss only months or years after completion. The timing boundary between ongoing work and completed work is frequently the subject of coverage disputes, particularly when multiple trades are involved in the same project.
Distinction
Completed operations coverage should be distinguished from the care, custody, or control exclusion, which concerns damage to property that remains in the insured’s physical possession, custody, or control at the time of loss; the care, custody, or control exclusion generally ceases to apply once the work has been delivered or accepted, whereas completed operations coverage becomes relevant precisely from that point onward.