A completed operations liability loss exposure differs from products liability loss exposure in that the completed operations exposure arises out of what?

A completed operations liability loss exposure differs from products liability loss exposure in that the completed operations exposure arises out of what?

• A. The entity's completed work, including defective parts or materials furnished with the work
• B. The products manufactured and sold to customers
• C. Someone else's product at a job site
• D. The advertising of the product

Answer: (A)

Completed operations liability covers damage or injury that results from the insured’s own finished work. It focuses on defects that are part of what the contractor actually completed, including defective parts or materials that were furnished as part of that finished project. In other words, if the finished project fails or causes damage after completion due to something the insured did or supplied during the job, that exposure is due to completed operations. This is different from products liability, which deals with defects in products the insured manufactures or sells to customers. It also isn’t about another company’s product at a job site, or advertising injuries, which relate to different kinds of liability. So the best description is that completed operations exposure arises out of the entity’s completed work, including defective parts or materials furnished with the work.

Completed operations liability covers damage or injury that results from the insured’s own finished work. It focuses on defects that are part of what the contractor actually completed, including defective parts or materials that were furnished as part of that finished project. In other words, if the finished project fails or causes damage after completion due to something the insured did or supplied during the job, that exposure is due to completed operations.

This is different from products liability, which deals with defects in products the insured manufactures or sells to customers. It also isn’t about another company’s product at a job site, or advertising injuries, which relate to different kinds of liability. So the best description is that completed operations exposure arises out of the entity’s completed work, including defective parts or materials furnished with the work.