Products & Completed Operations Coverage
What Is Products And Completed Operations Insurance?
Products Completed Operations Coverage is a component of a general liability insurance policy. It is designed to cover claims of bodily injury or property damage that may arise from your business’s products or the work you have completed.
To put it simply, the “products” part of this coverage pertains to any products your business uses. If a product causes harm to a customer or damages their property, this coverage can protect your business from the resulting claim. On the other hand, the “completed operations” part of this coverage pertains to the services your business provides. If a service you’ve completed causes harm or damage, this coverage can protect your business from any claims that may arise after the service has been rendered and completed.
As an example, the shampoo a hairstylist uses would be the product and the act of washing the client’s hair during the service would be considered a completed operation.
What Does Products Completed Operations Coverage Cover?
Products Completed Operations Coverage is designed to protect your business from claims that arise after a product has been used or a service has been completed. This includes:
1. Bodily Injury
If a customer or third party is injured by your product or as a result of your completed work, this coverage can help pay for medical expenses, legal fees, and any damages awarded in a lawsuit.
2. Property Damage
If your product or completed work causes damage to a customer’s or third party’s property, this coverage can help pay for repair or replacement costs, legal fees, and any damages awarded in a lawsuit.
It should be noted that this coverage only applies to incidents that occur away from your business premises and after the product has been sold or the work has been completed.
Who Needs Products Completed Operations Coverage?
Any business that uses products or provides services can benefit from Products Completed Operations Coverage. This is especially true for businesses in industries where there’s a higher risk of injury or damage occurring after the product has been sold or the service has been completed.
For example, a hair stylist dyed a client’s hair before prom. The result was severe burns to the client’s scalp and a lawsuit reaching over $250,000. Products Completed Operations Coverage protected the hair stylist. Another example is a makeup artist who works a wedding and several days later the bridesmaids notice a face rash.
To put it in a simple way: If your business involves using products or completing services that could potentially cause harm or damage after the point of sale or completion, you should consider Products Completed Operations Coverage.
How Much Does Products Completed Operations Coverage Cost?
Products Completed Operations Coverage is included as part of our general liability insurance offering. This means that when you purchase a policy, you’re already receiving this essential coverage. Our policy for individual professionals costs just $9.99/month or $96 a year.
Why Do You Need Products Completed Operations Coverage?
Products Completed Operations Coverage is crucial because it protects your business from claims that could arise long after a product has been used or a service has been completed. Without this coverage, your business could be exposed to significant financial risk.
For example, if as a nail technician you apply acrylic nails and a few days later the client notices one of the nails has caused an infection, the resulting claims could be costly. Incidents like these can lead to medical expenses, repair or replacement costs, legal fees, and other damages that your business would be responsible for. Having Products Completed Operations Coverage can help mitigate these risks and protect your business’s financial health.
How to Purchase Products Completed Operations Coverage
We’ve made purchasing Products Completed Operations Coverage easy to do online. In fact, most professionals can get insured in ten minutes or less. Simply:
- Go to the application
- Select your business activities
- Answer a few questions about additional coverage options
- Select when you want coverage to start
- Pay and you’re good to go
BBI offers a comprehensive general liability insurance policy that includes Products Completed Operations Coverage, providing a one-stop solution for your business insurance needs. If you ever have questions, don’t hesitate to contact our customer service team at (877) 536-7290.
Products And Completed Operations Coverage vs Product Liability
While Products Completed Operations Coverage and Product Liability may seem similar, they cover different aspects of your business’s operations.
Product Liability Insurance covers claims related to injuries or damage caused by a product that your business manufactures or sells. It also covers claims related to the failure of the product to perform as advertised.
On the other hand, Products Completed Operations Coverage pertains to claims that arise from your completed services or the products used in rendering those services.
Both coverages complement each other and provide a comprehensive protection plan for businesses that sell products or provide services.
BBI’s policy only covers Products and Completed Operations Coverage. If you feel like you need Product Liability coverage, our partners at Insurance Canopy can get you set up.
Securing Your Business: The Importance of Products & Completed Operations Coverage
Understanding and having Products Completed Operations Coverage is of great importance and urgency for any business that sells products or provides services. It provides protection against claims that could arise long after a product has been sold or a service has been completed, helping to safeguard your business’s financial health. We encourage every business owner to consider their insurance needs carefully and ensure they have the necessary coverage to protect their business.
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