Products And Completed Operations Exclusion
If the Products and Completed Operations Exclusion appears on your General Liability policy, you would not have coverage for any bodily injury or property damage that arises after the job is completed and accepted by the owner or purchaser. Examples of such lawsuits that would not be covered include:
- A fire caused by faulty wiring occurs three years after construction resulting in a total loss to the house, its contents, and the death of three occupants.
- Water damage caused by failure to install adequate flashing causes rotting to wall supports and wood sheathing.
- Five years after construction, the roof begins to sag due to a failure of the trusses.
In other words, you would only have coverage for premises related incidents during the course of construction. Examples of such lawsuits that would still be covered include:
- A child wanders onto the jobsite and is injured while playing.
- A worker accidentally severs an underground utility line.
- A worker accidentally starts a fire during construction that burns down a neighbor’s house.