Completed operations coverage protects you against claims arising from work you have already finished — roof leaks, system failures, wind uplift damage, and other defects that surface months or years after you leave the job site. For roofing contractors, this is where the most expensive claims occur. Understanding what happens to this coverage when you switch carriers or shut down your company is essential, because a gap in completed operations can leave you personally liable for six-figure claims from past projects.
Switching Carriers: The Occurrence vs. Claims-Made Distinction
Most roofing contractor GL policies are written on an occurrence basis, meaning they cover claims for incidents that occurred during the policy period regardless of when the claim is actually filed. If you had an occurrence-based policy with Carrier A from 2023 to 2025 and installed a roof in 2024 that fails in 2027, Carrier A's 2024 policy responds to that claim — even though you are now insured with Carrier B. The policy that was in force when the work was completed is the policy that pays.
This is why maintaining continuous completed operations coverage is critical. If you cancel your policy mid-term or let it lapse before switching carriers, you create a gap. Work completed during the gap period has no completed operations coverage, and no future carrier will retroactively cover that work.
The Completed Operations Aggregate
Your GL policy has a separate completed operations aggregate, typically matching your general aggregate at $2,000,000. This aggregate applies per policy year and covers all completed operations claims in that period. If you installed 200 roofs during a policy year and the aggregate is exhausted by claims from two of them, the remaining 198 roofs have no completed operations coverage for claims filed during that policy period. For high-volume roofing contractors, consider requesting a higher completed operations aggregate or a per-project aggregate that provides separate limits for each job.
Closing Your Business
If you are closing your roofing company, your completed operations exposure does not close with it. Statutes of repose in most states allow construction defect claims for six to twelve years after project completion (the exact period varies by state — it is ten years in Texas, six years in some other states). If you simply cancel your GL policy when you stop operating, you have no coverage for any claim filed after cancellation, even if the work was done while you were insured.
You have several options to manage this exposure:
- Extended reporting period (ERP) or "tail" coverage: Some carriers offer an extended reporting period endorsement that continues your completed operations coverage for a specified period — typically three to five years — after policy cancellation. The cost is usually 100% to 200% of your final annual GL premium, paid as a lump sum. For a roofing contractor paying $15,000 in annual GL, a five-year tail costs $15,000 to $30,000.
- Maintain a "sunset" policy: Keep a minimal GL policy in force with no ongoing operations and low limits, solely to maintain completed operations coverage. Some carriers offer this as a "dormant contractor" or "retired contractor" program at significantly reduced premiums — often $2,000 to $5,000 annually.
- Negotiate at sale: If you are selling your company, the purchase agreement should address completed operations liability. The buyer may assume it by purchasing ongoing coverage, or you may need to carry tail coverage for pre-sale work.
Warranty vs. Insurance
Manufacturer warranties (GAF, Carlisle, Firestone) cover material defects but not workmanship errors. Your completed operations coverage handles workmanship claims. These are separate obligations that do not overlap, and letting your completed operations lapse because you think the manufacturer warranty has you covered is a critical mistake. A seam failure caused by improper heat welding is a workmanship claim, not a material defect — the manufacturer's warranty will deny it, and your completed operations policy is the only thing standing between you and personal liability.
Plan your completed operations strategy before you switch carriers, reduce operations, or close your business. Once coverage lapses, you cannot buy it retroactively.