Completed Operations Insurance
Categories: Insurance, Company Management
Completed operations insurance is a liability insurance policy used by contractors and developers.
Example: A contractor finished construction of a walking bridge in a park two months ago, and then moved on to the next job. An elementary school class was taking a field trip and, when passing over the walking bridge, the bridge collapsed, sending several kids to their doom (i.e. a couple of scraped knees and one kid with a sprained ankle; seriously...from the screams, you'd think they had all died).
Who was liable? The contractor. Completed Operations Insurance would cover the cost of reconstructing the bridge and treatment of the injuries incurred by the melodramatic youngsters.