Completed operations coverage is the portion of your commercial general liability (CGL) policy that protects you against claims arising from work you have already finished. For roofing contractors, this is arguably the most critical component of your liability program because roof failures often do not manifest until months or years after installation. When a roof you installed develops a leak, loses shingles in a windstorm, or suffers a structural failure due to a workmanship defect, completed operations coverage is what responds to the resulting third-party bodily injury and property damage claims.
On the standard ISO CGL policy form, completed operations coverage is technically part of the "products-completed operations" coverage section. Your work is considered "completed" when you have finished all operations at the job site that you are required to perform under the contract, or when you have put the work to its intended use, whichever comes first. Once your work crosses that threshold, any claims arising from it shift from the "premises and operations" section to the "products-completed operations" section of your policy.
The products-completed operations section has its own separate aggregate limit, which is distinct from your general aggregate. On a standard $1,000,000/$2,000,000 CGL policy, you have a $2,000,000 products-completed operations aggregate in addition to your $2,000,000 general aggregate. This means claims from completed work do not erode the limits available for your ongoing operations, and vice versa. This separation is important for roofing contractors because it ensures that a large completed operations claim does not leave you uninsured for day-to-day operational risks.
The exposure window for completed operations claims in roofing is long. Most states have a statute of repose for construction defect claims that ranges from four to twelve years after project completion. During that entire period, you need completed operations coverage in force to respond to claims. If you cancel your CGL policy or switch to a carrier that excludes completed operations, you lose coverage for all prior work retroactively. This is one of the most dangerous coverage gaps a roofing contractor can have, and it underscores the importance of maintaining continuous CGL coverage with the completed operations section intact.
General contractors and project owners increasingly require roofing subcontractors to provide additional insured endorsements that extend into the completed operations period. The ISO form CG 20 37 (Additional Insured - Owners, Lessees or Contractors - Completed Operations) is the standard endorsement used for this purpose. When you add a GC or owner as an additional insured for completed operations, they gain the right to tender claims under your policy for liabilities arising from your completed roofing work. This is now a standard requirement on most commercial construction contracts.
Common completed operations claims in roofing include water intrusion from improper flashing details, blow-offs from inadequate fastener patterns, ponding water on flat roofs due to drainage deficiencies, and condensation damage from improper vapor barrier installation. These claims often involve not just the cost to repair the roof itself, but also interior damage to the building, personal property damage, business interruption losses for commercial tenants, and mold remediation. A single completed operations claim on a commercial roofing project can easily exceed $500,000 when all consequential damages are included.
It is worth noting that your CGL policy excludes damage to "your work," meaning the cost to tear off and replace your defective roofing system is not covered. Completed operations coverage only applies to the resulting damage caused by your defective work, such as water damage to the building interior. Some contractors purchase a "your work" exception through a subcontractor endorsement (CG 22 94 or CG 22 95), which provides coverage for damage to your completed work if the defective portion was performed by a subcontractor. This is valuable if you use sub-crews for portions of your installations.