Products-completed operations aggregate

The products-completed operations aggregate is the total coverage in your general liability insurance or business owner’s policy that protects you from financial damages if your product or completed service injures people or property.

The products-completed operations aggregate is the maximum amount of money your policy will pay for products or completed operations liability claims.

Many small business owners assume liability coverage ends once a job is finished or a product is sold. In reality, your risk often begins after the work is done.

If a customer is injured or their property is damaged because of:

• A product you sold
• A service you completed
• Installation or repair work that fails later

Your products-completed operations aggregate determines how much total protection you have for all of those claims combined.

Once this aggregate limit is exhausted, your insurer stops paying for covered claims in that category and your business may have to pay legal defense costs, settlements, or judgments out of pocket.

This aggregate applies to claims involving bodily injury or property damage that occur after your product is out of your control or your work is completed. This coverage is similar to product liability insurance.

Typically covered:

• A contractor installs shelving that later collapses and damages a customer’s property
• A landscaper installs an irrigation system that later malfunctions and floods a yard
• A small business sells handmade candles, and a defect causes a house fire
• A cleaning company finishes a job, and leftover residue causes a slip-and-fall injury days later

Typically not covered:

• Damage to the product itself
• The cost to repair or redo your own faulty work if no third-party damage occurs
• Product recalls
• Professional mistakes (these usually require professional liability insurance)

The products-completed operations aggregate also doesn’t cover claims from active projects, which are typically covered under other parts of general liability insurance, such as the per-project aggregate endorsement.

Small business insurance policies usually include both a per-occurrence limit and an aggregate limit. Here’s how they work together:

When deciding how much coverage you need, consider:

• How many customers you serve each year (more customers = more potential claims)
• The severity of damage your product or work could cause
• Contract requirements, which may specify minimum limits
• Your risk tolerance if multiple claims happen in the same year

Insureon helps small business owners compare insurance quotes from top-rated U.S. providers. Start an application today to protect your business from products and completed operations lawsuits.