Distinguish between Products and Completed Operations in CGL coverage timing.

• A. Products coverage applies to liability for injuries or damages caused by the insured's products after sale; Completed Operations covers injuries or damages arising from the insured's work after the project is completed.
• B. Products coverage applies only to the design phase of a product.
• C. Completed Operations coverage applies before the product is sold.
• D. Products and Completed Operations are the same concept.

Answer: (A)

In CGL coverage, the timing of liability differs between Products and Completed Operations. Products coverage handles liability for injuries or damages caused by the insured’s products after those products have been sold or distributed—damage that arises from the product while it’s in the market or in use by customers. Completed Operations coverage, on the other hand, covers liability for injuries or damages arising from the insured’s work after that work has been completed and the project is finished, even though the finished project may later cause harm. For example, a defective toaster causing injuries after purchase falls under Products coverage, while a faulty wiring installation that causes damage after the building is completed falls under Completed Operations coverage. The other statements misstate the timing—Products coverage is not limited to the design phase, Completed Operations does not apply before sale or completion, and they are distinct concepts.