What does Completed Operations Liability Insurance provide coverage for?

Completed Operations Liability Insurance provides coverage for loss arising out of completed projects. This type of insurance is essential for contractors as it protects them from liability claims related to work that has been finished. If a client or third party suffers damage or injury due to work that was completed, this insurance ensures that the contractor is covered for any associated legal costs or settlements.

The focus of this coverage is on the risks that emerge after the construction work is done, which is critical because many claims can arise long after a project is completed. For example, if a building structure suffers from a defect due to poor workmanship after the contractor has completed the work, the contractor could be liable for damages. This insurance provides peace of mind for contractors, knowing they have a safety net for claims related to their past work.

By understanding this coverage, contractors can manage their risks effectively and ensure they are adequately insured, which is vital in the construction industry, where the potential for liability claims is prevalent.