Los Angeles Claims Adjuster Property and Causality Practice Exam

When is completed operations coverage triggered?

1. When work begins

2. When business is liable for completed work

3. When an employee is dismissed

4. At the point of contract signing

The correct answer is: When business is liable for completed work

Completed operations coverage is triggered when a business becomes liable for work that has already been completed. This type of insurance is designed to protect contractors and businesses from claims that might arise after their work has been finished. For example, if a contractor completes a job, such as installing a roof, and later a problem arises leading to property damage or injury, the completed operations coverage would respond to a claim alleging that the completed work was defective or caused the damage. This coverage is essential because it provides protection for incidents that occur after the work is done but while the potential for liability still exists. It recognizes that the risk does not end once the business has left the job but can extend into the future, covering claims related to those completed operations.