Completed operations coverage is a component of commercial general liability insurance that covers claims for bodily injury or property damage arising from a contractor's or vendor's completed work - after that work has been finished and the site or project has been accepted. It is the coverage that applies when a defect in workmanship or an installation failure causes harm after the contractor has packed up and moved on.
Completed operations coverage is a component of commercial general liability that covers claims for bodily injury or property damage arising from a contractor's finished work - after it has been completed and the site accepted.
For project owners, general contractors, and property managers, completed operations is one of the most important - and most frequently underverified - elements of vendor and subcontractor insurance compliance.
Why Completed Operations Coverage Is Separate
Standard general liability insurance covers claims arising from ongoing operations - things that go wrong while the contractor is actively working. But once a project is completed and accepted, liability for the completed work moves into the products/completed operations coverage territory.
Many of the most significant liability events in construction occur after project completion:
- A roofing system that was installed incorrectly begins leaking months after the roofer departed
- A structural element constructed without proper specifications fails years later
- An electrical installation that was not to code causes a fire after the electrician's work was accepted
- A plumbing system incorrectly installed develops a slow leak that causes mold damage discovered years later
These are completed operations claims. Without this coverage, the contractor's general liability policy does not respond - and the property owner, general contractor, or other affected party has no insurance backstop against the faulty subcontractor.
How Completed Operations Coverage Appears on a COI
On an ACORD 25 form, completed operations coverage is shown as part of the commercial general liability section, in the products/completed operations aggregate field. This is a separate aggregate from the general aggregate and applies specifically to products and completed operations claims.
The presence of a products/completed operations aggregate on the COI confirms that this coverage is part of the CGL policy. However, the aggregate amount must also be verified against contractual requirements - the products/completed operations aggregate may be lower than the general aggregate.
The Additional Insured Problem for Completed Operations
Here is where completed operations creates a particularly common compliance failure: the additional insured endorsement.
Many additional insured endorsements cover only ongoing operations - specifically ISO form CG 20 10. This form covers claims arising from ongoing work but does not extend additional insured protection to completed operations claims. A separate endorsement - ISO CG 20 37 - is required to extend additional insured status to completed operations.
A construction contract that requires the general contractor or subcontractor to name the project owner as additional insured for both ongoing and completed operations must require both forms:
- CG 20 10 - ongoing operations
- CG 20 37 - completed operations
A COI that shows additional insured status and references only CG 20 10 does not satisfy a contract requiring completed operations coverage. This is a commonly missed compliance gap.
How Long Completed Operations Coverage Is Required
Defects from completed construction work can surface years after project completion. Many construction contracts and commercial real estate agreements require that the contractor maintain completed operations coverage for a specified period after project completion - commonly two to five years, sometimes longer for major structures.
This creates an ongoing compliance monitoring obligation:
- The contractor must maintain the policy through the required post-completion period
- Annual renewals must be verified to confirm the products/completed operations aggregate remains in place
- If the contractor fails to renew or changes policies, completed operations coverage may lapse
For large projects, requiring evidence of completed operations coverage annually for the required post-completion period is a compliance best practice. This is not a check done once at project closeout.
What to Check When Reviewing a COI for Completed Operations
- Products/completed operations aggregate - is it present, and does the limit meet contractual requirements?
- Additional insured for completed operations - is CG 20 37 (or equivalent) referenced in addition to CG 20 10?
- Policy form - occurrence form is required for completed operations to provide long-term protection; claims-made policies can leave completed operations gaps after the policy expires
- Post-completion coverage period - if the contract requires extended coverage, is the policy in force or has the required tail been obtained?
Common Compliance Issues
CG 20 10 only, no CG 20 37. Additional insured for ongoing operations is present, but completed operations additional insured is absent. The gap is invisible without knowing to look for it.
Products/completed operations aggregate too low. The general aggregate is adequate, but the products/completed operations aggregate is insufficient for the project's risk.
Claims-made policy for completed operations. A claims-made policy provides no coverage for completed operations claims after the policy expires without a tail. Occurrence form is strongly preferred.
How Bramble Helps
Bramble reads completed operations requirements from your contracts - including endorsement form requirements and post-completion coverage periods - and checks submitted COIs for the products/completed operations aggregate, CG 20 37 endorsement, and ongoing compliance through the required coverage period.
Visit getbramble.com to see how Bramble handles contract-vs-COI compliance including completed operations verification.