What is the Products-Completed Operations Hazard, and when does it apply?

• A. It covers bodily injury or property damage occurring during the insured's active operations.
• B. Coverage for bodily injury or property damage arising from products manufactured or sold or workmanship performed after the product leaves the insured's control or after project completion.
• C. It covers only employee injuries.
• D. It excludes any property damage.

Answer: (B)

The key idea is that the Products-Completed Operations Hazard extends liability coverage to damage that happens after the insured’s product has left their control or after a project has been completed. It covers two related situations: harm caused by the insured’s products once they’re out in the world (product liability), and harm caused by the insured’s own work after the project is finished (completed operations). The important timing point is that the claim arises after the product has been sold or after the work is completed, even if the injury or damage is discovered later. For example, a defective widget sold by the insured causes injury later, or a construction crew’s completed work later leads to damage; both fall under this hazard.

This matters because it explains why coverage applies beyond during-production or during active construction. It isn’t limited to employee injuries (that’s workers’ compensation), and it doesn’t exclude property damage (it includes property damage caused by products or by completed operations).