If you provide a tangible service, such as installing refrigeration systems, there is the risk that negligence could result in damage caused by your work after your work is done (a “completed operation”). If you’ve purchased a California business liability insurance policy you may need to be sure it contains products and completed operations coverage.
The “products completed operations” hazard covers each of the above risks under certain conditions.
When a product is involved, to be covered, the injury or damage must occur away from your own premises—unless your business includes the selling, handling or distribution of your product for consumption on premises you own or rent.
With respect to property damage as the result of completed operations, “property damage” means physical damage to tangible property, including loss of use of that property. Intangible property, such as digital data, would not be covered. Bodily injury to others would be covered if someone is hurt due to negligence in the installation or servicing of the insured’s product.
Products and completed operations liability coverage should not be confused with premises liability at an insured’s property.