There are many instances in which your business can be held liable for a products/completed operations insurance claim. For instance, if your company manufactures or sells products, then it can be held liable in the event that a product that you sell is accused of causing bodily injury, illness, or property damage. If your company is hired to complete work (such as construction work), then it can be on the receiving end of a completed operations claim if the finished work is faulty and causes injuries or damages.
Additionally, your company might be held liable for a products/completed operations claim if a client claims negligence or breach of warranty. For instance, imagine your company manufactured and sold a chair with the guarantee that it could safely hold up to 500 pounds. If your company’s chair collapsed under the weight of a 200-pound customer leading to injury, then the injured customer could sue your company alleging breach of warranty.
Generally, products/completed operations claims are covered under your business’s general liability insurance. For a claim to be covered, it must meet a certain set of conditions. To start, the claim must allege that bodily injury or property damage occurred. If the claim is for other losses unrelated to injury or damage, then the claim will not be covered. Next, the affected party must argue that the injury or damage was directly related to your company’s product or completed work. Finally, the bodily injury or property damage must take place away from your business’s premises. The injury or damage must take place when the product is no longer in your company’s physical possession.
Interested in learning more about your business’s products/completed operations liability risks? Then contact the insurance experts at Premier Risk, LLC. Our dedicated team is ready to assist you with all your coverage needs today.