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🏗️ '''Completed operations''' is an insurance concept referring to liability arising from work that a contractor, manufacturer, or service provider has finished and handed over, where the resulting product or project later causes [[Definition:Bodily injury | bodily injury]] or [[Definition:Property damage | property damage]] to a third party. In [[Definition:Commercial general liability (CGL) | commercial general liability]] underwriting, completed operations represents a distinct hazard category — separate from [[Definition:Premises and operations liability | premises and operations]] exposure — because the insured no longer has control over the work at the time the loss occurs. A plumbing contractor whose faulty installation causes a flood six months after project completion, for example, faces a completed operations claim rather than an operations-in-progress one.

🔧 [[Definition:Underwriter | Underwriters]] assess completed operations exposure by examining the nature of the insured's work, the duration over which latent defects might manifest, the quality-control procedures in place, and the insured's historical [[Definition:Claims experience | claims experience]]. The [[Definition:Insurance Services Office (ISO) | ISO]] CGL policy form includes completed operations within the "products-completed operations hazard" classification, and [[Definition:Premium | premium]] for this coverage is typically calculated using a separate [[Definition:Rate | rate]] applied to the insured's [[Definition:Revenue | receipts]] or [[Definition:Payroll | payroll]]. Some [[Definition:Policy form | policy forms]] allow the coverage to be included or excluded, and the choice significantly affects the overall risk profile and price of the policy. [[Definition:Additional insured | Additional insured]] endorsements extending completed operations protection to project owners or general contractors are among the most commonly negotiated coverage provisions in construction insurance.

📐 The distinction between ongoing and completed operations is far more than academic — it drives [[Definition:Loss reserve | reserving]] practices, [[Definition:Reinsurance | reinsurance]] treaty structures, and [[Definition:Statute of repose | statutes of repose]] analysis. Losses from completed operations often have long reporting tails, meaning claims may surface years after the policy period, which complicates [[Definition:Incurred but not reported (IBNR) | IBNR]] estimation. For insurers writing [[Definition:Construction insurance | construction-related risks]], understanding and properly pricing completed operations exposure is essential to avoiding adverse reserve development and maintaining [[Definition:Underwriting profit | underwriting profitability]] over time.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Commercial general liability (CGL)]]
* [[Definition:Products-completed operations hazard]]
* [[Definition:Additional insured]]
* [[Definition:Premises and operations liability]]
* [[Definition:Construction insurance]]
* [[Definition:Incurred but not reported (IBNR)]]
{{Div col end}}

Definition:Completed operations - Revision history

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