Products & Completed Operations

In commercial insurance, Products and Completed Operations (P&CO) coverage protects your business from financial losses resulting from claims of bodily injury or property damage caused by your products or completed services. It's an essential component of most General Liability insurance policies and acts as a shield against lawsuits and claims beyond your business premises.

How it works:

Imagine a customer gets injured using your product, or a building you constructed suffers damage after completion. Without P&CO coverage, you could face significant legal and financial repercussions. This coverage steps in to cover:

• Medical expenses: Pays for medical bills of individuals injured by your products or completed operations.
• Property damage: Covers repairs or replacements of property damaged by your products or services after completion.
• Legal defense costs: Even if a lawsuit against your business is ultimately found invalid, P&CO covers your legal defense fees, including attorney fees and court costs.

Key coverage aspects:

• Products: Protects you from claims related to injuries or damage caused by products you manufacture, sell, distribute, or install.
• Completed Operations: Covers you for claims related to errors or defects in your services after completion, even if performed off-site.
• Occurrence vs. Claims-made: Some policies cover claims arising from incidents that occurred during the policy period (occurrence), while others cover claims filed during the policy period regardless of when the incident occurred (claims-made). Choose the best option for your business needs.

Who needs it?

Nearly all businesses that create, sell, or deliver products or services need P&CO coverage. Some specific examples include:

• Manufacturers: Protects against product liability claims for injuries or damage caused by their products.
• Contractors: Covers claims arising from faulty workmanship or defects in completed construction projects.
• Service providers: Shields them from lawsuits alleging negligence or errors in completed services.
• Retailers: Protects against claims related to injuries or damage caused by products they sell.

Advantages of P&CO coverage:

• Peace of mind: Knowing you have financial protection against lawsuits and claims allows you to operate with confidence.
• Reduces financial risk: Prevents potentially devastating financial losses from product liability or completed operations claims.
• Compliance: P&CO coverage might be mandatory depending on your industry or contractual agreements.

It's highly recommended to discuss your business's unique risks and operations with an insurance professional. They can help you assess your exposure and choose the right P&CO coverage with appropriate limits, exclusions, and endorsements to ensure comprehensive protection.