California Property & Casualty Broker-AgentCasualty InsuranceHard
A California business client operates a small, specialized construction company. They are purchasing a Commercial General Liability (CGL) policy. They routinely perform work at customer locations, and are concerned about liability for injury or damage that occurs after their work is completed and accepted by the customer. Which CGL coverage feature specifically addresses this concern?
- AOperations Liability
- BPremises Liability
- CContractual Liability
- DProducts-Completed Operations Hazard
Show answer & explanationAnswer & explanation
Correct answer: D. Products-Completed Operations Hazard
The Products-Completed Operations Hazard coverage within a CGL policy specifically covers bodily injury or property damage claims arising out of the insured's product or work, but occurring away from premises owned or rented by the insured AND after the work has been completed or the product put to its intended use.
Why the other options are wrong
- A. Operations Liability covers injury/damage occurring during the course of ongoing operations, not after they are completed.
- B. Premises Liability covers incidents occurring on the insured's own premises, not after work is completed at a customer's site.
- C. Contractual Liability covers liability assumed under a contract, not necessarily post-completion work hazards.
Products-Completed Operations Hazard
The Products-Completed Operations Hazard coverage in a CGL policy provides protection against liability for bodily injury or property damage arising from the insured's products or completed work, occurring after the product has been sold or the work completed.
- Covers incidents occurring away from the insured's premises.
- Triggered after the work is finished or product delivered.
- Crucial for contractors, manufacturers, and service businesses.
Memory trick: Completed work can come back to bite you.