Completed Operations

This is the liability arising out of faulty work performed away from the premises after the work or operations are completed. This could be applicable to contractors, electricians, repair shops, plumbers and other similar type of business.

This form provides coverage for property damage and bodily injury rising from abandoned or completed operations. There is a requirement that the incident occurs away from the premises rented or owned by you, the insured.

When is an operation considered completed? It is the earliest of the following:

  • When all operations to be performed on behalf or by you, the insured, under contract have been completed.
  • When someone other than the contractor or subcontractor has put the portion of work out of which damage or injury rises to its intended use.

An example is when the plumber has installed the sprinkler system and then left the premises with no intention of returning. Now problem develops because the system was not installed correctly.

You should be discussing the Broad Form Completed Operations (BFCO) type of wording with your agent or broker. You may find that this endorsement is highly suitable to your type of work. Ask questions and take control of your insurance.