Completed Operations Insurance

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DEFINITION of 'Completed Operations Insurance'

An insurance product that covers the liability incurred by a contractor for property damage or injuries that may happen to a third party once contracted operations have ceased or been abandoned. Even though the operations are deemed to be "completed" by the contractor, the loss or injury is deemed to be as a result of those operations. Completed operations insurance contracts are applied to construction products or the manufacturing of consumer goods and medicines.

INVESTOPEDIA EXPLAINS 'Completed Operations Insurance'

This type of coverage is often covered under general liability insurance, but sometimes is purchased by a contractor/manufacturer over and above general liability to cover loss or injury that occurs off the insured's property.


Completed operations insurance (or in the case of consumer products, products-completed operations insurance) can cover manufacturing defects, failure to warn on usage or malfunction resulting in harm.

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