For many contractors, the most misunderstood — and most dangerous — part of a Commercial General Liability (CGL) policy is Completed Operations coverage. Jobs end, invoices are paid, and everyone moves on. But legally and financially, your exposure often continues long after the last tool is packed up.
When claims arise months or even years later, contractors are shocked to learn that coverage they assumed was automatic is limited, restricted, or excluded entirely. Understanding how Completed Operations really works can be the difference between a covered loss and a catastrophic out-of-pocket claim.
This article breaks it down in plain English: what triggers a Completed Operations claim, how long you’re exposed after a job is finished, and the policy traps that can quietly wipe out coverage.
What Is Completed Operations Coverage?
Completed Operations coverage applies to bodily injury or property damage that occurs after your work has been completed or abandoned. In insurance terms, it’s part of the Products–Completed Operations Hazard found in most CGL policies.
Put simply:
- Ongoing Operations = claims that occur while you’re still working
- Completed Operations = claims that occur after the job is done
Example: You install a staircase in an apartment building. Six months later, a tenant falls because the railing pulls out of the wall. That claim falls under Completed Operations, not ongoing work.
What Triggers a Completed Operations Claim?
A Completed Operations claim is triggered by when the injury or damage occurs, not when the work was performed.
Key trigger points:
- The work has been completed per contract
- The injury or damage occurs later
- The claim alleges faulty workmanship, improper installation, or defective work
Common claim scenarios include:
- Water damage from plumbing leaks discovered months later
- Structural failure after occupancy
- Fire caused by improper electrical installation
- Mold growth tied to past construction defects
- Balcony, façade, or stair failures
Even if the work was completed years ago, a claim can still be triggered — if the policy in force when the damage occurs allows it.
How Long Are Contractors Exposed After a Job Is Done?
This is where many contractors get caught off guard.
From a legal standpoint, exposure often lasts years or decades, depending on:
- State statutes of repose
- State statutes of limitation
- Contractual indemnity obligations
In New York, New Jersey, and Connecticut, contractors can face construction defect claims many years after project completion — especially on bodily injury or latent property damage claims.
From an insurance standpoint:
- Completed Operations is not a lifetime benefit
- Coverage only applies if you maintain continuous CGL coverage
- Claims-made policies do not typically apply — CGL is occurrence-based
If you cancel your policy or switch to one with restrictive endorsements, you may effectively erase protection for past work.
The Biggest Completed Operations Coverage Traps
1. Low or Inadequate Completed Operations Limits
Many policies separate:
- General Aggregate
- Products–Completed Operations Aggregate
If your Completed Operations aggregate is too low, it can be exhausted quickly by a single claim — especially on large property losses.
Contractors working on residential, multifamily, or commercial projects should closely review these limits every year.
2. Hidden Completed Operations Exclusions
Some of the most dangerous exclusions are buried deep in endorsements. Examples include:
- Residential construction exclusions
- Exterior work exclusions
- Height limitations
- Subsidence or foundation exclusions
- Classification limitations that indirectly eliminate completed ops
Even worse: some policies carve back Completed Operations for only a narrow scope of work, leaving everything else uninsured.
3. Prior Work or Retroactive Date Endorsements
Some carriers attempt to exclude:
- Work performed before a certain date
- Projects started before the policy inception
- All prior completed work
This means claims tied to earlier jobs — even if damage occurs today — may be denied outright.
4. Subcontracted Work Limitations
Contractors often assume their policy covers claims arising from subcontractor work. That’s not always true.
Problematic endorsements may:
- Exclude subs entirely
- Require written agreements for coverage to apply
- Limit Completed Operations coverage for subcontracted work
If you’re a GC relying heavily on subs, this is a critical issue.
5. Excess and Umbrella Policies That Don’t Follow Form
Even when the primary policy looks solid, excess policies can quietly:
- Exclude Completed Operations
- Modify “insured contract” definitions
- Add construction defect exclusions
- Eliminate Additional Insured coverage
If the excess policy doesn’t follow form, the protection you think you have may vanish above the primary limits.
How Contractors Can Protect Themselves
Completed Operations coverage isn’t something you buy once and forget. It requires ongoing attention.
Smart contractors should:
- Review endorsements, not just certificates
- Confirm Completed Operations aggregates annually
- Avoid policies with broad construction defect exclusions
- Maintain continuous coverage with no gaps
- Coordinate primary and excess policy language
- Avoid low-cost policies that trade price for exclusions
Certificates do not tell the whole story — and neither do policy summaries.
Why Experienced Guidance Matters
Completed Operations claims are some of the most expensive losses contractors face. They often involve:
- Multiple parties
- Long-tail litigation
- Experts and forensic investigations
- Significant property damage
When coverage disputes arise, insurers rely heavily on exclusions and technical policy language. Having the wrong policy — even unknowingly — can leave you defending yourself with no insurance support.
This is exactly why policy review and contract-driven coverage design matters.
How BGES Group Helps Contractors Stay Protected
At BGES Group, we specialize in helping contractors understand what their insurance actually covers, not what they assume it covers.
We work with contractors throughout New York, New Jersey, and Connecticut, focusing on:
- Construction-specific CGL reviews
- Completed Operations exposure analysis
- Identification and removal of harmful endorsements
- Coordination between primary and excess liability
- Risk transfer review for owner and GC requirements
Our approach goes beyond issuing certificates. We dig into policy language, exclusions, and endorsements to help prevent catastrophic coverage gaps before a claim ever happens.
Contact BGES Group
If you’re unsure whether your Completed Operations coverage will truly protect you when a claim hits, now is the time to review it — not after a loss.
BGES Group Serving contractors in New York, New Jersey, and Connecticut
📞 Phone: 914-806-5853 – Gary Wallach
✉️ Email: bgesgroup@gmail.com
🌐 Website: www.bgesgroup.com
Completed Operations claims don’t care how long ago the job was finished — and your insurance shouldn’t either. Make sure your coverage is built to last as long as your exposure does.