Completed Operations Coverage Explained
What Is Completed Operations Coverage?
Completed operations is a component of your commercial general liability policy that covers bodily injury or property damage caused by your finished work after you have left the jobsite. For roofers, this means if a roof you installed two years ago develops a leak that destroys interior finishes, or if improper flashing causes mold growth, your completed operations coverage responds. It is not a separate policy but rather a part of your CGL that specifically addresses liability arising from work you have already completed and handed over to the owner.
Why Roofers Need Completed Operations
Roofing defects often do not manifest until months or years after installation. A poorly sealed penetration may not leak until the first heavy rain six months later. Inadequate ventilation can cause sheathing rot that takes years to become apparent. Without completed operations coverage, you would be personally liable for all repair costs, consequential damages, and legal defense expenses arising from your past work. This coverage is also contractually required on virtually every commercial project and most GC subcontract agreements for residential work.
How Claims Work After Project Completion
When a claim arises from completed work, it is reported to your current carrier at the time the claim is made, not the carrier you had when the work was performed. This is because CGL policies are occurrence-based, meaning the policy in force when the damage occurs responds. If a roof installed in 2022 causes water damage in 2025, your 2025 policy responds. This is why maintaining continuous coverage without gaps is essential. A lapse in coverage can leave you exposed for all prior completed work during the gap period.
Coverage Limits and Duration
Completed operations shares the general aggregate limit with your premises and operations coverage in most standard CGL policies. Common limits are $1 million per occurrence and $2 million aggregate, though many commercial contracts require a separate completed operations aggregate through endorsement CG 25 03. Coverage for completed work typically extends for the applicable statute of limitations or statute of repose in your state. In Texas, this means potential liability exposure for up to ten years after substantial completion.
Common Exclusions to Watch For
Standard completed operations coverage excludes damage to your own work (the cost to re-do the roof itself), work performed by subcontractors unless the subcontractor exclusion is removed by endorsement, expected or intended damage, contractual liability beyond insured contracts, and professional services. The "your work" exclusion means your policy pays for the water damage your leaking roof caused but not the cost to replace the roof. Understand these boundaries clearly because they represent gaps where your own funds are at risk.
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