Definition
Completed Operations Liability refers to policies that insulate contractors, plumbers, electricians, and similar professionals from legal responsibility (liability) for injuries or property damage that occurs due to faulty construction or other services once those operations are finished. These issues may become evident only after the project has been handed off to the client and are no longer under the direct control of the insured party.
Parties Affected
Typically, this type of insurance benefits:
- Contractors and Builders
- Electricians
- Plumbers
- Home repair services
- Other service providers involved in constructing or servicing structural facilities.
Key Points
- Scope: Applies to damages or injuries occurred after the project is completed (or abandoned), away from the operational premises of the insured.
- Legal Foundation: It is crucial given the potential risks once professionals are no longer periodically supervising or evaluating performed work on-site. Insurance reduces financial strain from claims which may arise due to assumed negligent activities linked to the failures linked to completed work justified over time.
Looking into specific guidelines and statutes, such as local building codes or the Construction Defect Claims Adjuster’s Guide, helps to understand how liabilities might be managed. Relevant national regulations include provisions found in the Occupational Safety and Health Act, primarily when analyzing accidents from a safety and compliance perspective.
