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Products and Completed Operations (CGL, Coverage A)

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Shuman Roy is an entrepreneur, business owner, and musician. He started RoysNoys, LLC in 2013 as a music production and education service company. He also offers small business consulting and advisory services to help businesses get from start-up mode to turn-key operations. Shuman earned his M.B.A from the Stern School of Business in 2001...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency...

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Reviewed byJoel Ohman
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UPDATED: Mar 13, 2020

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Products and Completed Operations is part of the Commercial General Liability (CGL) policy related to commercial insurance.

Specifically, this is a bodily injury (BI) and property damage (PD) coverage in part A of the CGL.

Premises and operations liability is the other coverage in part A of the CGL, not discussed in this article.

Products and Completed Operations coverage insures a policyholder specifically against BI and PD claims for damages resulting from negligence associated with businesses that manufacture something or sell a tangible product or good.

It is important to note that these coverage types are in effect when a product leaves your premises.

Premises and operations liability covers your liability for damages that result on your property, before your goods are released.

Neither coverage type is extended to you or your employees. Employees are covered by workers compensation insurance.

Let’s look at an example of each.

Products Liability

Imagine you own a company that produces knives.

A certain type of knife you make is prone to breaking at the handle, causing people to severely cut themselves while using it.

This means your design was negligent, making you liable for bodily injury caused to people who purchased and used it.

Your products liability coverage would protect you against the ensuing lawsuits.

Completed Operations

Imagine you own a company that builds homes. You built a two-story home with a staircase to the second floor.

If someone were viewing the home for a potential purchase, and while walking up the stairs, grabbed the railing and it gave way, causing them to fall and break their hip, you would be responsible for the faulty construction.

You would be entirely liable for the resulting bodily injury.

Since the house was fully built, this would be considered a completed operation, and you would have coverage for the damages resulting from this claim.

There are two additional coverage types that make up a complete general liability policy. Part B, personal and advertising injury, and part C, medical payments to others.

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