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As a working Trade Contractor, your company is typically required to have General Liability (GL) coverage before entering a project site. Within your GL policy, you have coverage for Premises Operations and Products-Completed Operations as a Named Insured. Since both Premises and Completed operations coverages are included in your typical General Liability policy, there will likely be contractual requirements that ask you to provide Additional Insured endorsements showing coverage for the Owner, General Contractor and/or Trade Contractor.
Premises Operations (aka Ongoing Operations) coverage, insures the policyholder for liability arising out of bodily injury and/or property damage, resulting from negligence associated with owning, leasing, renting property and the daily operations necessary to conduct business. What that means is, if bodily injury and/or property damage claims occur while you’re working on a project or in your place of business—such as an office or shop—you are protected in the event you’re held liable for that bodily injury and/or property damage. This covers your company while you’re conducting ongoing operations and only for work or other business activities that have not been completed or abandoned.
The Owner/General Contractor/Trade Contractor want to be included as Additional Insureds—that way, they aren’t pulled into a lawsuit due to your company’s work.
Products-Completed Operations insures the policyholder for liability arising out of their products or business operations conducted away from their premises once those operations have been completed or abandoned. This means your company has coverage if you’re held liable for bodily injury and/or property damage arising out of a product you make or sell, or work you’ve completed.
In the case of construction work, this coverage extends to work that you’ve already completed and typically has a separate aggregate limit that will apply to the claims under this provision. An Owner/General Contractor/Trade Contractor want to be included as Additional Insureds on this coverage for the same reason as above, it provides them protection if they are pulled into a lawsuit solely due to your company’s work.
Timing Is Everything
The main difference between these coverages is when a bodily injury or property damage occurs. If the bodily injury or property damage occurred while your company is still working on the project, then premises operations would provide the coverage. If the incident occurred after your company has already finished the work and the project is completed, then completed operations would provide the coverage.
If you have questions or concerns about the coverage provided by your policy, reach out to your Broker. There are many different types of coverage endorsements, some expand coverage, where others can be very restrictive. Check with your Broker on what is best for you or reach out to TSIB with any questions.