If you’re a New York contractor, you know your Commercial General Liability (CGL) policy is your first line of defense against the financial fallout of accidents, property damage, or injuries that happen on your jobs. But here’s something that catches many contractors by surprise: your coverage is split into two broad categories—Ongoing Operations and Completed Operations—and knowing which is which could mean the difference between a covered claim and a costly out-of-pocket nightmare.
Whether you’re building from the ground up, renovating, or doing smaller subcontracting work, understanding the difference is critical for risk management, contract compliance, and avoiding uninsured exposure. Let’s break it down.
Ongoing Operations Coverage
This is protection for work you are currently performing. If property damage or bodily injury occurs while the work is still in progress, ongoing operations coverage applies. Importantly, this does not apply once you’ve completed your work or left the job site—that’s where completed operations kicks in.
Here are five examples of Ongoing Operations claims:
- Falling Debris During Construction While framing the second floor of a townhouse, a piece of lumber falls and damages a parked vehicle below. The damage occurs while the crew is actively working, so it’s covered under ongoing operations.
- Injury to a Pedestrian Passing the Job Site A pedestrian trips over an extension cord running from the sidewalk into your work area. The work isn’t done yet, so the injury falls under ongoing operations.
- Property Damage from Active Work A contractor’s crew is cutting pipe inside a building and accidentally floods an office suite below. Since the work was still in progress, ongoing operations applies.
- Subcontractor Causing Damage Mid-Project An electrician hired by you drills into a water line during installation, damaging drywall and flooring. The project is still underway, so it’s considered an ongoing operations claim.
- Scaffolding Collapse During Work Hours While a masonry team is actively laying bricks, their scaffolding collapses, damaging a neighboring building. Because the work wasn’t completed, the claim is covered under ongoing operations.
Completed Operations Coverage
Once you’ve finished the work, packed up your tools, and left the job site, any damage or injury related to your work shifts to completed operations. This coverage is sometimes referred to as the “products-completed operations hazard” in your CGL policy.
Here are five examples of Completed Operations claims:
- Roof Leak Months After Completion Six months after finishing a roofing project, heavy rain causes leaks that damage a client’s interior. The damage is due to defective installation and falls under completed operations.
- Faulty Electrical Wiring Causing Fire A year after finishing electrical work on a home, faulty wiring installed by your crew sparks a fire. Completed operations covers resulting damage (but not redoing the defective work itself).
- Tile Installation Leading to Slip Hazard You install tile in a lobby. Months later, water seeps beneath, causing tiles to lift and a tenant to slip and get injured. This is a completed operations claim.
- Cabinet Installation Failure Three months after installing kitchen cabinets, they detach from the wall, damaging countertops and injuring the homeowner. This damage occurs after you’ve finished the work, so it’s completed operations.
- HVAC System Malfunction After completing HVAC installation in an office building, the system fails in the middle of winter, causing water pipes to freeze and burst. Completed operations would respond to the resulting damage.
Why the Distinction Matters for New York Contractors
In New York—especially in construction—contract requirements often specify both ongoing operations and completed operations coverage for Additional Insureds. General contractors, property owners, and even municipalities want to ensure they’re protected during the job and after the work is complete.
If your policy only covers ongoing operations for Additional Insureds, you could be in breach of contract. Worse, you could be stuck defending a lawsuit out of your own pocket years after the job is done.
Remember: New York has a six-year statute of limitations on construction defect claims. Without completed operations coverage, you could be unprotected for a long time after the work wraps up.
Best Practices for Contractors
- Review Contracts Carefully – Look for language requiring both ongoing and completed operations for Additional Insureds.
- Coordinate with Your Insurance Broker – Make sure your CGL policy and endorsements match what your contracts require.
- Document Work Completion – Keep records of when your job was finished; it can help determine if a claim is ongoing or completed operations.
- Keep Certificates Updated – If you’re the GC, ensure your subs carry both coverages and keep their certs current.
Why Work with BGES Group
At BGES Group, we’re not just insurance brokers—we’re New York Contractor Insurance Specialists. We understand the unique liability challenges contractors face in the NY metro area, and we know how to tailor policies that meet tough contractual requirements.
We work extensively with contractors in New York, New Jersey, and Connecticut, from small specialty trades to large general contractors. Our goal is simple: Make sure you’re covered, compliant, and confident—whether you’re in the middle of a job or years past completion.
We stay ahead of industry changes, New York Labor Law complexities, and the nuances of surplus lines markets so you can focus on running your projects without sleepless nights about insurance gaps.
Contact BGES Group – Gary Wallach
📞 Phone: (914) 806-5853
📧 Email: bgesgroup@gmail.com
🌐 Website: www.bgesgroup.com
Final Thought: If you’re a contractor working in New York, the difference between ongoing and completed operations coverage isn’t just an insurance technicality—it’s a survival skill. Don’t find out the hard way that your policy doesn’t cover a claim because it happened after the job was done. Let BGES Group make sure you’re protected from day one until long after the last nail is hammered.