Glossary / Policy structure / Completed Operations

Completed Operations

Also known as: Products-Completed Operations Hazard · completed operations coverage

Policy structure

The part of a general liability policy that covers injury or damage caused by your work after that work is finished and away from your premises.

Completed operations is the element of the "products-completed operations hazard" in a standard ISO Commercial General Liability (CGL) policy (form CG 00 01) that responds to bodily injury or property damage arising out of the insured's work after it has been completed and occurring away from premises the insured owns or rents. It is distinct from ongoing-operations liability, which covers incidents while the work is still in progress. Because a defect can surface months or years after delivery, prime contractors and enterprise customers frequently require a vendor to maintain products-completed operations coverage — and to keep it in force for a defined period after final acceptance (commonly two to three years, though the period varies). That maintenance requirement is contractual, not statutory, and is typically set in the vendor contract or subcontract.

Source: IRMI — Completed Operations

Common vendor contract language

Coverage shall include products and completed operations and be maintained for not less than [two/three] years following final acceptance of the work.

Where you'll see it

Vendor contractPolicyCOI

Why it matters for your business

  • For a startup that ships hardware — drones, sensors, components — a defect discovered after delivery is exactly the completed-operations exposure this coverage answers.
  • Primes often require the coverage be kept in force for years after delivery, so letting the policy lapse can breach the contract even after the work is done.
  • It is a coverage element within CGL, not a separate policy, so confirming it is included — and at the right limit — matters when placing the program.

People also ask

What is the difference between completed operations and ongoing operations?

Ongoing operations covers injury or damage that happens while the work is still in progress. Completed operations covers injury or damage that arises out of the work after it has been finished and away from your premises.

How long must completed operations coverage be maintained?

There is no statutory period — it is set by contract. Prime contracts commonly require it be maintained for two to three years after final acceptance, but the exact period varies, so check the specific contract.

Ready to take the next step?

Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994

Last updated: July 2026.