A contractor's completed work leads to later injuries or property damage due to defective parts provided with the work. This is an example of which exposure?

A contractor's completed work leads to later injuries or property damage due to defective parts provided with the work. This is an example of which exposure?

• A. Product Liability Loss Exposure
• B. Premises Liability Exposure
• C. Environmental Liability
• D. Completed Operations Loss Exposure

Answer: (D)

Completed operations exposure covers liability for injuries or property damage that arise after the contractor’s work has been completed, stemming from the work or materials used in the project. In this case, defective parts provided with the finished job cause harm later on, so the liability is tied to what was completed and installed, not to ongoing site activity. That timing and source of damage—after the project is finished—fits the completed operations category best. Premises liability would address injuries occurring on the insured’s premises during operations, environmental liability deals with pollution risks, and product liability involves harm from a product sold or manufactured, rather than from parts installed as part of a completed construction project.

Completed operations exposure covers liability for injuries or property damage that arise after the contractor’s work has been completed, stemming from the work or materials used in the project. In this case, defective parts provided with the finished job cause harm later on, so the liability is tied to what was completed and installed, not to ongoing site activity. That timing and source of damage—after the project is finished—fits the completed operations category best. Premises liability would address injuries occurring on the insured’s premises during operations, environmental liability deals with pollution risks, and product liability involves harm from a product sold or manufactured, rather than from parts installed as part of a completed construction project.