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Insurance & Bondingaka: products and completed operations

Completed Operations Coverage

In Plain English

Insurance that covers a contractor for problems that show up after a project is finished.

Definition

Completed operations coverage is a component of commercial general liability insurance that protects a contractor against claims arising from bodily injury or property damage that occurs after a project is finished and the work has been turned over to the owner. Construction defects discovered months or years after project completion commonly trigger completed operations claims. Policies typically provide this coverage for a set period after project completion.

Example

A roofing contractor's completed operations coverage pays out when a roof leak causes interior water damage two years after the project was accepted by the owner.

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