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Operations Insurance and Loans


A completed operations insurance policy helps contractors and manufacturers settle claims while maintaining the financial stability of their businesses. It can protect against breach of contract and negligence claims. The coverage ensures reasonable compensation for damages or injuries resulting from the contractor’s work or a manufacturer's product. This type of indemnity insurance may settle punitive damages assessed by a court. Completed operations insurance will not cover instances of a product recall.

How Completed Operations Insurance Works

The insurance company provides the contractor with legal defense and pays for any settlement or judgment resulting from accidents related to covered completed work. For example, the company pays for the restoration, repair, or replacement of property when the contractor performs the work incorrectly. The extent of coverage may address defects in the materials used to build the structure or a malfunction of the electrical or other internal system resulting in damage to the building or occupants of the building. Some policies cover the contractor’s failure to provide fair warning about how to properly maintain and manage the building and its systems.

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