What Is Products and Completed Operations Coverage?

This article will define products and completed operations coverage, how it works and what is covers and doesn't so you can get the right protection for your business.

Learn more about product and completed operations coverage below.

Written by Angelique Palenzuela-Cruz

Updated: January 18, 2026

Advertising & Editorial Disclosure

Products and completed operations coverage (PCO) is part of general liability (GL) insurance that covers third-party injuries or damage after a job is done or a product is sold. This coverage matters because many liability claims don’t happen while you’re actively working or selling and happen later once a product is in someone else’s hands, or your work has already been completed.

If your business installs, repairs, builds, manufactures, or sells physical products, products and completed operations is one of the most important parts of your GL policy to understand. Click each topic area to learn more and we recommend learning about each in order:

How It Works
What It Covers
What It Doesn't Cover
Who Needs It
How To Frame Your Thinking Moving Forward
Recommended Next Steps

How Does Products and Completed Operations Coverage Work?

Products and completed operations coverage is typically handled under Coverage A (Bodily Injury and Property Damage Liability) of a general liability insurance policy. Unlike ongoing operations coverage under Coverage A, products and completed operations coverage applies after the job is complete or after a product leaves your control.

Its payout structure is split into two main limits:

Per occurrence limit: Your maximum total payout for a single incident like drywall falling after installation and any damages or legal fees that are a result of it. This is the same as the Coverage A per occurrence limit.
Products and completed operations (PCO) aggregate limit: Your maximum amount total you can be reimbursed for over the policy period (typically one year). This is a separate limit pool from the general aggregate limit, which applies to most other Coverage A claims and Coverage B claims.

What Does Products and Completed Operations Coverage Cover?

To make it easier to understand what this coverage includes, the table below breaks down the most common items products and completed operations coverage can pay for.


Bodily injury	A person is injured due to your product or completed work after the product is sold or the job is finished	A handrail you installed fails weeks later and causes a fall
Property damage	A third party’s property is damaged due to your product or completed work after completion/sale	A completed plumbing job later leaks and damages cabinetry
Legal defense costs	You’re sued or a claim is filed alleging injury/damage tied to your product or completed work	You’re named in a lawsuit after an installed fixture breaks
Settlements	A covered claim is resolved without trial	Your insurer settles a completed operations injury claim
Court judgments	You lose a covered lawsuit and the court awards damages	A court awards damages for property damage from a product defect
Medical costs (as part of damages)	Medical expenses are part of the injury damages owed to a third party	Treatment costs are included in damages from a completed operations injury

What Products and Completed Operations Coverage Does Not Cover

Like any other business insurance type, product and completed operations coverage does not cover everything. It does not cover any damages or legal fees caused by incidents happening during operations. Even if events happen after products leave your hands or you finish a job, you'll be left with the following exclusions.


Fixing or redoing your own completed work	PCO is designed to pay for third-party injury or property damage caused by your completed work, not the cost of correcting the work itself when it fails to meet expectations	Warranty/guarantee; contractor’s contract terms; internal funds
Replacing or repairing your own defective product	PCO may respond if your product causes injury or property damage, but it generally does not cover the cost of the product being defective on its own (often referred to as a “your product” business risk)	Warranty programs; manufacturer agreements
Professional mistakes (design, advice, specifications)	PCO falls under Coverage A and is limited to BI/PD claims—not losses caused by professional judgment, incorrect design, or advice errors	Professional liability (E&O)
Product recalls	A recall is a business decision/cost to prevent future losses, not a covered claim for BI/PD caused by a specific post-sale incident	Product recall insurance
Damage to your own tools, inventory, or building	PCO is liability coverage for damage you cause to others after completion/sale; it does not pay for loss to your own property	Commercial property insurance
Damage to the product/work itself with no other resulting damage	PCO generally applies when a defect causes resulting third-party injury or damage—not when the only issue is the product or work needing replacement	Warranty; service guarantee; internal funds
Employee injuries	PCO is third-party liability; injuries to employees are handled outside GL by design and excluded under Coverage A	Workers’ compensation
Auto-related incidents	The claim arises from use of a vehicle, which is excluded from GL/PCO even if the incident occurs after delivery	Commercial auto insurance
Intentional wrongdoing	PCO applies to accidents/occurrences, not deliberate harm	None (uninsurable)
Pollution claims (common exclusion)	Many GL policies exclude pollution events even when they occur after completion (a classic post-job risk) unless endorsed	Pollution liability / endorsement

Who Needs Products and Completed Operations Coverage?

Products and completed operations coverage is most important for businesses that can still create liability after a job is finished or after a product is sold. These types of businesses include those in the following industry areas:

Manufacturing: High exposure because claims can arise after products leave your control and are used in real-world conditions.
Retail and Product Rental: Even if you didn’t manufacture the product, you can still be named in a product liability lawsuit as the seller or rental provider.
Contracting & Construction: Completed work can fail after the job is finished, creating injury or property damage exposure long after you leave the site.
Repair and Maintenance: Repairs can fail later and cause resulting damage, which is often when liability claims actually happen.
Food & Beverage: Post-sale/post-service exposure is high because products are consumed after purchase and can lead to illness claims.
Wholesale and Distribution: Distributors can be pulled into product liability claims even when they aren’t the manufacturer, especially when supplying products at scale.

Product and Completed Operations Coverage: Bottom Line

Products and completed operations (PCO) coverage is where general liability protection becomes most “real” for many businesses, because the claims often show up after the work is finished or after a product is sold. Your protection depends less on whether the coverage exists and more on whether your policy has enough capacity to ensure you for the most likely claim events your business with experience. With that in mind, when making coverage decisions or updating existing policies you should evaluate your risks inherent to your operations and set limits accordingly.

Product and Completed Operations Coverage: Next Steps

As a first step after reading, we recommend learning how products and completed operations coverage fits into general liability insurance overall, including which policy limits apply to post-job and post-sale claims. This helps you confirm whether your current (or future) coverage is structured correctly and prevents you from comparing policies that aren’t truly equivalent.

From there, use the links below to find the next best resource based on where you are in your journey.

If you'd still like to learn more about general liability insurance

If you want to understand different coverage types available

Types of business insurance

If you are ready to compare pricing and providers

About Angelique Palenzuela-Cruz

Angelique Palenzuela-Cruz is a Content Writer at MoneyGeek specializing in business insurance, with a primary focus on three core coverage types: general liability, workers’ compensation and professional liability insurance. She creates in-depth content that helps small business owners understand policy terms, coverage options and state-by-state considerations so they can make informed insurance decisions.

With five years of experience in personal finance journalism, Angelique has covered a wide range of insurance and lending topics, including mortgages, HELOCs, home equity loans, and personal insurance products such as auto, homeowners, health and pet insurance. Her research-driven approach is informed by her Bachelor of Arts in Psychology, which shapes how she presents complex financial information in clear, accessible language for everyday readers making coverage decisions.

At MoneyGeek, she is committed to ensuring her content meets rigorous accuracy and quality standards, with every article developed under editorial review to help business owners better understand their coverage options.

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