Louisiana P&C Adjuster Practice Exam

In the context of a Commercial General Liability policy, how are “completed operations” generally defined?

1. Operations performed within the workplace

2. Services provided after a job is finished

3. Work that is concluded away from the insured's premises

4. Ongoing services still in progress

The correct answer is: Work that is concluded away from the insured's premises

"Completed operations" in the context of a Commercial General Liability (CGL) policy refers specifically to work that has been finished and is typically performed away from the insured's premises. This coverage is crucial for protecting businesses against claims arising from damage or injuries that occur after the work has been completed but before ownership or responsibility has officially been transferred to the client or third party. The reason this definition is significant lies in the nature of liability; once the operations are completed, the risk shifts towards the potential for claims related to defects or issues that may arise from the completed work down the line. This could include anything from a construction-related liability claim to a service that caused damage, highlighting the importance of ensuring the work is not only done correctly but also safely after it is concluded. The other options do not accurately capture the essence of "completed operations." Operations performed within the workplace primarily pertain to ongoing activities rather than completed tasks, and services provided after a job is finished can be misleading because they may not represent the finality associated with completed operations. Ongoing services still in progress contradict the very definition, as they suggest that work has not yet reached its completion, which is essential for this type of liability coverage.