Completed Operations: Claims That Surface After You're Gone

1 min read Brian Berge · Independent insurance agent in Arden Hills, MN

Q: Why do completed operations claims surface after construction ends? A: Completed-ops claims surface years later because underwriting assumes latent defects and long-tail exposure risk.

Start here: Inland Marine & Mobile Business Property

Twin Cities job sites often stack multiple subs and tight timelines, which makes operations coverage and claim timing matter more than the brochure suggests.

Observed Reality

A project closes out cleanly, then a year later a property owner files a defect claim tied to the work.

Why That Happens

Completed operations claims trail the job because failures show up after usage, weather, or occupancy stress the build.

Why It Stops Working

Assuming the risk ends at completion ignores warranty language and statutes of repose. The claim window can outlast your policy year.

Tradeoffs

Extending coverage and limits protects against late claims but costs more. Tight subcontractor scopes reduce exposure but require oversight.

Price Levers

  • Risk signals: prior defect claims, warranty volume, and scope creep.
  • Coverage structure: completed ops aggregates, contractual risk transfer, and limits.
  • Market timing and carrier fit: appetite for long-tail construction exposures.

Deeper context

For the longer breakdown, see Construction Claims: Active vs Completed Operations, in Plain English.

Decision Rule

If completed-ops exposure is high, extend tail coverage; if not, audit subcontractor quality.

Minnesota note: claim patterns and contractor timelines vary by county, so Twin Cities experience isn’t always a perfect proxy for outstate Minnesota.

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