What is Completed Operations Insurance Coverage

If a project is finished, it doesn’t mean it’s truly done. The real test comes over time—whether the work holds up or if issues emerge. Even after completing a job, there’s still a risk of defects or failures, which can lead to legal and financial consequences.

For businesses in construction, contracting, manufacturing, and installation, these post-completion risks can be significant. A minor defect in workmanship or a faulty installation can escalate into property damage and injuries, putting your business at financial risk.

Without the right insurance, you could be held liable for damages caused by past work—even if the issue arises months or years later. That’s where Completed Operations Insurance comes in. 

In this post, we’ll break down what completed operations insurance is, who needs it, what it covers (and doesn’t cover), how long it lasts, and how much it costs.

What is Completed Operations Insurance?

Completed operations insurance protects businesses from liability claims that arise after a project is finished. If work you completed later causes property damage or bodily injury; this coverage helps pay for legal costs, settlements, and repairs.

It is typically included in a Commercial General Liability (CGL) policy under the “products-completed operations hazard” section.

How Completed Operations Insurance Works?

Completed operations insurance activates when:

• The project is finished – All work has been completed, and the contractor is no longer responsible for maintenance.
• The work is in use – The project has been put to its intended purpose, such as a finished building being occupied.
• A claim arises due to completed work – The issue occurs after project completion, not while the work was still in progress.

Who Needs Completed Operations Liability Insurance?

‍Any business involved in work that has long-term effects after completion should have completed operations liability insurance. Industries that need completed operations insurance:

• Construction and Contracting – General contractors, builders, and remodelers need protection if their completed work later results in structural issues, leaks, or safety hazards.
• Plumbing and HVAC Services – Plumbers and HVAC technicians can face claims if faulty installations cause water damage, gas leaks, or heating/cooling failures.
• Electrical Contractors – Electricians need coverage in case of fire hazards or power failures resulting from wiring or panel installations.
• Roofing Companies – A poorly installed roof can lead to leaks, mold, or even collapses, making insurance essential.
• Manufacturing and Product Installation – The business can be held liable if a manufactured product or an installed system fails and causes harm.
• Landscaping and Hardscaping Services – Poorly constructed patios, retaining walls, or irrigation systems can cause damage or injuries over time.
• Painting and Flooring Contractors – Improperly applied finishes, slippery coatings, or flooring defects can create long-term hazards.

Every industry has unique risks, and completed operations insurance ensures that your business stays protected long after a project is finished. At TWFG Khan Insurance, we understand the specific challenges faced by businesses in construction, contracting, plumbing, electrical, manufacturing, and other high-risk industries.

Our team works closely with you to customize coverage that aligns with your operations, so you’re not left vulnerable to post-completion claims. Whether you need protection against structural defects, faulty installations, or unforeseen property damage, we help safeguard your business with tailored insurance solutions designed to fit your needs.

‍What Does Completed Operations Insurance Cover?

‍Completed operations insurance protects your business from these claims:

• Property damage – Covers damage caused by completed work, such as a faulty roof installation that leads to leaks and structural issues.
• Bodily injury – Protects against injuries caused by work after completion, like a loose railing installation that results in a customer falling.
• Legal defense costs – Pays for attorney fees, court costs, and settlements if a claim is made against your business.
• Medical expenses – Covers medical bills if someone gets injured due to your completed work.
• Damages caused by subcontractor work – Provides coverage if subcontracted work fails and leads to property damage or injury.

Example: A plumbing contractor installs a water heater in an office building. Months later, a faulty connection causes flooding, damaging floors and walls. Completed operations insurance covers the cost of repairs and legal fees, ensuring the contractor doesn’t pay out of pocket.

‍What Completed Operations Insurance Doesn't Cover?

‍While completed operations insurance provides essential protection, it does not cover everything. Understanding these exclusions helps protect your business and avoids unexpected financial risks. Key exclusions in completed operations insurance:

• Cost of repairing or replacing faulty work: If your work is defective, your insurance covers the resulting damage but not the cost to fix or redo the original work.
• Intentional misconduct or negligence: Any damage caused deliberately or due to willful neglect is not covered.
• Employee injuries: If one of your employees gets injured on the job, workers’ compensation insurance is required, not completed operations insurance.
• Contractual liabilities: If your contract specifically states you are responsible for certain types of claims, this policy may not cover them.
• Product recalls: If a defective product needs to be recalled, this insurance will not cover the costs.
• Damage before project completion: Completed operations insurance only applies after a job is finished. If damage occurs during work, general liability insurance is needed.

Example: A contractor installs electrical wiring in a new office building. A year later, an electrical fire causes severe property damage. The insurance covers the damages caused by the fire, but the contractor is responsible for redoing the faulty wiring.

Not every policy covers every risk, and coverage gaps can expose your business to unexpected liabilities. That’s why choosing the right insurance partner matters. At TWFG Khan Insurance, we help businesses like yours identify potential coverage gaps and find tailored solutions that provide complete protection. 

Whether you need additional general liability, workers’ compensation, or product liability insurance, our team ensures you have the right policies in place to safeguard your business from financial risks.

‍How Long Does Completed Operations Insurance Coverage Last?

‍The duration of completed operations insurance coverage depends on several factors, including state laws, contract requirements, and the terms of your insurance policy.

‍Typical Coverage Duration

• Standard coverage period: Most completed operations policies cover claims for up to 10 years after project completion, which is in accordance with the statute of repose in many states.
• Project-specific requirements: Some contracts require contractors to maintain coverage for a set number of years beyond project completion.
• State regulations: Certain states have longer or shorter time limits for liability claims, which can impact how long coverage is needed.
• Extended coverage options: Businesses can purchase additional policies to extend coverage beyond standard policy terms.

How Much Does Completed Operations Insurance Cost?

‍The cost of completed operations insurance varies based on several factors. Insurers assess your business's risk level, industry, claims history, and coverage needs to determine the premium.

While some businesses may pay a few thousand dollars annually, others in high-risk industries may face higher premiums. The factors that influence cost:

• Industry type: High-risk industries, such as construction, roofing, and plumbing, typically have higher premiums due to the potential for costly claims.
• Business size and revenue: Larger businesses with more projects and higher revenue may need higher coverage limits, which can increase the cost.
• Claims history: A clean claims record leads to lower premiums, while a history of claims can raise insurance costs.
• State regulations: Some states require longer coverage durations, affecting the policy cost.
• Policy limits and deductibles: Higher coverage limits and lower deductibles increase costs, while lower limits and higher deductibles can reduce premiums.
• Type of construction or materials used: Businesses using higher-risk materials or construction methods may see increased rates.

How to Manage Insurance Costs

• Bundle policies – Many insurers offer discounts when bundling completed operations insurance with general liability coverage.
• Implement risk management strategies – Maintaining strong safety protocols and quality control measures can reduce claims and lower premiums.
• Work with an experienced insurance provider – Choosing an insurer like TWFG Khan Insurance which understands your industry ensures you get the right coverage at a competitive rate.

Protect Your Business from Post-Completion Liabilities with TWFG Khan Insurance

‍At TWFG Khan Insurance, we understand the risks businesses face long after completing a project. That’s why we provide tailored completed operations insurance to protect businesses long after the job is done.

With our expertise, we help businesses in construction, contracting, manufacturing, and installation secure the right coverage—so you’re never caught off guard by an unexpected claim.

• Industry-specific solutions: We tailor policies to meet the needs of contractors, subcontractors, manufacturers, and service providers who face long-term liability risks.
• Comprehensive protection: Our plans cover bodily injury, property damage, and legal fees resulting from completed work, reducing your business's financial burden.
• Seamless policy customization: We help identify coverage gaps and ensure your business has the protection it needs against potential claims.
• Long-term security: Our coverage aligns with state-mandated liability periods to provide ongoing protection even years after project completion.

At TWFG Khan Insurance, we make it easy to protect your business from post-completion liabilities. This allows you to focus on growth, reputation, and future success with confidence.

‍Get a quote with us today for a customized completed operations insurance plan.