Throughout the course of any business interaction, a provider is liable for the safety of the service they provide. This liability might be initiated when a customer enters the establishment, but it can be less clear when the liability ends. Is a restaurant still liable for a customer's food poisoning, for example, if they complain of symptoms a week after being served? If a contractor completes work on a new building, but the client discovers a grievance a month later, should the contractor still be responsible? These are the questions addressed by completed operations insurance. Completed operations insurance offers coverage for claims made after a business transaction is completed and service has been rendered.
What is ongoing and completed operations, and what do these terms mean in the context of an insurance policy? Many business owners never consider the possibility of liability extending past the completion of a transaction or contract. Unfortunately, though, it can. Ongoing operations refers to the period wherein services are provided, and completed operations refers to the finished product after the transaction is done. Every business should have an insurance policy that covers both in order to shield against all potential exposures.
Completed operations insurance is typically considered standard in industries such as construction, manufacturing, and pharmaceuticals, but it can be an asset to any business in any sector - especially those that deal directly with customers. This means that restaurants, retail stores, nightclubs, and sports bars are all ideal venues for a completed operations policy. The hospitality industry can be subject to unique exposures, but comprehensive coverage can provide protection against the most common and most costly liabilities.
Every completed operations policy is different, and clients should find an insurer who can tailor a policy to their unique needs. Generally, though, a completed operations policy should extend coverage for any known liabilities or customer claims that originate outside the period of ongoing operations. This includes any claims of injury or breach of contract that are alleged after a transaction has been completed. The policy should cover the costs associated with an investigation of the claim as well as a potential payout if it is approved.
Though completed operations coverage is an important resource for protecting a business and its assets, the best defense against loss and liability is the prevention of claims. Businesses may not always be able to predict the outcome of a transaction, but some completed operation claims may be prevented through improved communication between parties. If a business seeks feedback from a client, for example, this might eliminate the need for a dispute that escalates to a claim.
At RMS Hospitality Group, our expertly crafted policies are written specifically for the hospitality industry. We offer custom tailored solutions to meet any venue's specific needs. For more information, contact our knowledgeable experts today at (888) 359-8390.
At RMS and associated firms, business continues as usual. Our staff is remote-capable and available to handle all partners, brokers, and insureds at the present time.
