Which liability exposure would be associated with service contractors whose completed work can cause damage after completion?

Which liability exposure would be associated with service contractors whose completed work can cause damage after completion?

• A. Premises liability
• B. Completed operations
• C. Employee liability
• D. Product liability

Answer: (B)

Completed operations exposure covers liability for damage or injury that happens after the service work has been completed. For service contractors, problems arising after completion—such as faulty wiring causing a fire later, or a plumbing job that leaks and damages property weeks after the work is done—fall under completed operations. This type of coverage addresses claims tied to the finished work, not to incidents that occur during on-site work or from products manufactured or sold, and it isn’t framed as employee-related liability. Because the harm occurs after the project is complete, completed operations is the most appropriate exposure to insure.

Completed operations exposure covers liability for damage or injury that happens after the service work has been completed. For service contractors, problems arising after completion—such as faulty wiring causing a fire later, or a plumbing job that leaks and damages property weeks after the work is done—fall under completed operations. This type of coverage addresses claims tied to the finished work, not to incidents that occur during on-site work or from products manufactured or sold, and it isn’t framed as employee-related liability. Because the harm occurs after the project is complete, completed operations is the most appropriate exposure to insure.