What kind of damages does a completed operations insurance typically cover?

Completed operations insurance is designed to protect contractors and businesses from liability arising from claims related to their work after the project has been completed. This type of insurance coverage typically includes damages related to bodily injury or property damage that occur as a result of the construction work, long after the work has been finished.

This means that if a failure occurs with the work performed—such as a structural failure, defect in materials, or accident—this insurance will cover the liability and legal costs associated with such claims. Completed operations coverage is crucial because issues might not arise until years after the project has ended, and without this insurance, contractors could face significant financial repercussions.

The other options focus on different aspects of construction and insurance where completed operations coverage does not apply. For example, damages during construction would be covered by different insurance, typically general liability during the project phase. Environmental damages during construction also fall under specific liability policies, often separate from completed operations coverage. Lastly, theft of materials pertains to property insurance rather than liability insurance related to completed operations. Thus, the focus on liability from project failures after completion accurately reflects the purpose and function of completed operations insurance.