Completed operations coverage under your commercial general liability (CGL) policy lasts for as long as you keep the policy in force. There is no built-in expiration date tied to individual projects. As long as you continue to renew your CGL policy each year with the products-completed operations section included, you have coverage for claims arising from any work you completed during the current or prior policy periods, going back to your policy's retroactive date.
This is a critical distinction that many roofing contractors misunderstand. Your CGL policy is written on an occurrence basis, meaning it covers claims for events that occurred during the policy period, regardless of when the claim is actually reported. If you installed a roof in 2024 and the homeowner discovers a leak in 2028, your coverage responds as long as you had a CGL policy in force in 2024 when the defective work was performed and you still have continuous coverage or the policy in effect at the time of the occurrence can be identified and triggered.
The practical limit on completed operations exposure is determined by your state's statute of repose for construction defect claims. The statute of repose sets an absolute deadline after which no claim can be brought, regardless of when the defect was discovered. These statutes vary significantly by state. For example, Texas has a 10-year statute of repose for construction defect claims. Florida's is 10 years for latent defects and 4 years for patent defects. California's statute of repose is 10 years for latent defects under Civil Code Section 896. New York does not have a traditional statute of repose but applies a 6-year statute of limitations from the date of completion for breach of contract claims.
In practice, this means your completed operations exposure window can stretch for a decade or more on any given project. During that entire window, you need to maintain continuous CGL coverage. If you allow your policy to lapse, switch carriers without ensuring prior acts coverage, or retire and cancel your policy, you may lose coverage for all prior completed work. This is one of the most significant long-tail risks in the roofing industry.
When you retire or close your business, you should discuss "tail coverage" or an extended reporting period with your broker. Some insurers offer the option to purchase an extended reporting period that extends your right to report claims for a specified number of years after your policy expires. This is essentially a way to maintain completed operations protection after you stop active operations. The cost varies but is typically calculated as a percentage of your final year's premium, often 100% to 200% for a three- to five-year tail.
Contract requirements can also dictate how long you must maintain completed operations coverage. Many commercial construction contracts require roofing subcontractors to maintain their CGL policy with completed operations for a specified period after project completion, commonly three to five years but sometimes matching the full statute of repose. If your contract requires you to maintain coverage for five years after completion and you cancel your policy after two years, you are in breach of contract and potentially liable for any claims the GC or owner incurs during the uncovered period.
For ongoing protection, request that your broker document the retroactive date on your CGL policy and ensure it does not move forward when you renew or change carriers. A retroactive date that moves forward creates a gap in coverage for prior completed work, which is exactly the scenario you need to avoid. The ideal retroactive date is the date you first obtained CGL coverage as a business, ensuring continuous protection for all work performed throughout your company's history.