Product/Completed Operations

Product Liability Insurance provides coverage for claims arising after a product is sold. The coverage is known as Completed Operations Liability Insurance for contractors and provides insurance for claims resulting after a construction project is completed. Manufacturers are sued years after selling a product. Distributors are named as defendants simply because a product passed through their warehouse. Contractors have been held liable decades after they have “Completed Operations “on construction projects.

Since claims arise over a long time frame properly structuring coverage is critical as each policy renews. Coordinating policy terms of Commercial General Liability & Commercial Umbrella policies is crucial and particularly so when a Claims Made policy provides liability limits and tail coverage issues emerge. Factors complicating this coverage include:

• Different carriers are used for Primary limits & Umbrella.
• Market conditions expand or restrict coverage year to year.
• Documenting events which occurred years ago.
• Clients changing carriers.
• Coverage change from Occurrence to Claims Made.
• Claims may involve multiple carriers.