What is completed operations coverage? How is it different from professional liability?
Completed Operations Coverage:
Completed Operations coverage is included under general liability and protects businesses against claims for bodily injury or property damage that arise after a job has been completed. It's particularly relevant for businesses that provide services or products that could potentially cause harm or damage even after they are no longer directly involved with the project.
For example, if a contractor completes a construction project and later a structural issue arises causing damage, completed operations coverage could protect them from liability claims. Another example is if a hair stylist gets bleach on a designer dress, ruining the product. Completed operations could pay for the claim.
Errors & Omissions (E&O) Insurance:
E&O insurance, also known as professional liability insurance, protects businesses and professionals from claims of negligence, mistakes, or failure to perform professional duties. This coverage is essential for professionals who provide services or advice to clients, such as consultants, architects, lawyers, and healthcare providers. If a client claims financial loss or damages due to errors or omissions in the services provided, E&O insurance can cover legal fees, settlements, and judgments.
For instance, if a realtor mistakenly tells a client that the home, they are buying is in a specific school district when it isn't, errors and omissions insurance would cover the claim.
In summary, completed operations coverage focuses on claims related to completed work that leads to bodily injury or property damage (included under general liability), while errors & omissions insurance covers claims arising from mistakes, negligence, or failure to perform professional duties. Both types of coverage are important for businesses to mitigate liability risks, depending on the nature of their operations and the services they provide. Pathpoint can provide completed operations for classes within our contractors, manufacturing, and retail & services verticals.