Products-Completed Operations
Explained Simply.
Discover what this coverage means, when it applies, common examples, and how it helps protect your business from future claims.
What Is Products Completed Operations Coverage?
The Products-Completed Operations Aggregate is one of the most important, and often misunderstood, limits in a Commercial General Liability (CGL) policy.
It represents the maximum amount the insurance company will pay during the policy period for all covered bodily injury and property damage claims that arise after your work is completed or from products you sell, manufacture, distribute, or supply.
Simply put, it is your "after the job is done" coverage.
What Is "Products" Coverage?
Products Liability applies when a product you manufactured, sold, distributed, or supplied causes bodily injury or property damage after it leaves your control.
EXAMPLE
A company sells space heaters.
Six months later, one overheats and starts a house fire.
The customer sues for:
• Property damage
• Bodily injury
This is typically a Products Liability claim.
What Is "Completed Operations" Coverage?
Completed Operations applies after you’ve finished your work and left the job site.
This commonly applies to:
• Contractors
• Electricians
• Plumbers
• Roofers
• Window installers
• HVAC contractors
• Carpenters
• Landscapers
Once the work has been completed, future claims generally fall under Completed Operations.
Need Some Examples? Sure.
Window Installer
A contractor installs 30 windows in a commercial building.
Eight months later, water begins leaking behind one improperly flashed window.
Damage includes:
• Mold remediation: $250,000
• Drywall replacement: $120,000
• Flooring replacement: $60,000
Total claim: $430,000
Because the installation was already completed, this would generally be considered a Completed Operations claim.
Restaurant
A restaurant serves contaminated food.
Thirty customers become ill.
Because the claim arises from the product the restaurant sold (the food), this would generally be considered a Products Liability claim.
Why Does This Coverage Matter?
Many liability claims don't happen immediately. Problems may not appear until:
• Weeks later
• Months later
• Even years later
Completed Operations coverage helps protect your business when those delayed claims occur.
Without it, a single claim after the work is finished could create significant financial exposure.
Typical Limits
Most small businesses carry limits similar to the following:
Coverage | Limit |
Each Occurrence | $1,000,000 |
General Aggregate | $2,000,000 |
Products/Completed Operations Aggregate | $2,000,000 |
Notice the Products/Comp-Op Aggregate is separate from the General Aggregate.
Why Is It Separate?
Imagine a contractor has:
• General Aggregate: $2 million
• Products-Completed Operations Aggregate: $2 million
During the Year
Premise claims:
• Customer slips in office — $500,000
• Visitor injured — $300,000
General Aggregate remaining: $1.2 million
Later that Year
Completed jobs result in claims of:
• $400,000
• $600,000
• $700,000
These claims reduce the Products-Completed Operations Aggregate, not the General Aggregate.
Keeping these limits separate helps preserve coverage for both types of claims.
What Isn't Covered?
Completed Operations coverage does not guarantee payment to repair or replace your own faulty workmanship.
Example:
A contractor installs flooring incorrectly.
The customer only wants the flooring replaced.
Generally: ❌ The cost to remove and replace the defective flooring is not covered under a standard CGL policy.
However…
If the faulty workmanship causes damage to other property, that resulting damage may be covered.
EXAMPLE
Poor Plumbing Installation
Pipe Bursts
Water damages walls, flooring, and furniture
Typically:
• ❌ Replacing the defective pipe may not be covered.
• ✅ Damage to the building may be covered, depending on the policy language and applicable state law.
Easy Way to Remember
Situation | Coverage |
|---|---|
| You’re actively working | Each Occurrence |
| You’ve finished the work | Completed Operations |
| A product you sold later causes damage | Products Liability |
When Is a Separate Products Liability Policy Needed?
Most businesses receive Products Liability coverage through their Commercial General Liability policy.
A separate Products Liability policy is more common when:
• The business does not carry a standard CGL policy
• The products present unusually high risks
•Higher liability limits are needed
• Coverage is written through a specialty insurance market
Examples include some manufacturers or distributors of:
• Pharmaceuticals
• Medical devices
• Firearms
• Aircraft components
• Certain dietary supplements
• High-hazard chemicals
• Some imported products with significant liability exposure
EXAMPLE
Medical Device Manufacturer
A company manufactures implantable medical devices.
Because of the potential severity of claims, the company may purchase:
• A Commercial General Liability policy, and
• A separate Products Liability policy (or specialized program) with higher limits and tailored coverage.
Products-Completed Operations at a Glance
Completed Work
Covers claims that arise after you've finished your work if it results in covered bodily injury or property damage.
Products
Covers claims caused by products you manufacture, sell, distribute, or supply after they leave your control.
Policy Limit
All covered Products and Completed Operations claims share the Products-Completed Operations Aggregate, which is the maximum your insurer will pay during the policy period.
Frequently Asked Questions
Yes. Products-Completed Operations coverage can help protect you from certain claims that arise after you have completed a job, subject to the terms and conditions of your policy.
No. General Liability coverage typically does not pay to repair or replace your own faulty work. It is generally intended to cover certain resulting property damage or bodily injury, subject to the terms and exclusions of your policy.
It depends on your insurance carrier and the terms of your policy. The amount of time in which a claim can be made after a job is completed may vary.
Most businesses do. Products-Completed Operations coverage is typically included as a standard part of a General Liability policy and helps protect against certain claims arising from completed work or products.