When David Martinez received the lawsuit 18 months after completing a custom home framing project, he was stunned. The homeowner's structural engineer discovered undersized floor joists causing excessive deflection, cracking interior finishes, and creating a potential safety hazard. The lawsuit sought $380,000 in damages - $45,000 to re-frame the floor system and $335,000 for interior repairs, temporary housing, and legal fees.
⏰ Long-Tail Liability Warning
You can be sued for framing defects 6-10 YEARS after completing a project. Without proper completed operations coverage, you're personally liable for all damages.
David had general liability insurance, but he wasn't sure if it would respond. The work was finished long ago. Would his insurance company pay to fix his framing mistake? Would they cover the resulting damages? This scenario plays out hundreds of times each year for framing contractors, and understanding completed operations coverage can mean the difference between a resolved claim and financial catastrophe.
What Is Completed Operations Coverage?
📋 Definition
Completed operations coverage is insurance protection for framers against liability claims arising after work is finished. It covers bodily injury or property damage caused by your completed framing work, including defense costs and settlements.
This coverage is automatically included in standard general liability insurance policies as part of the "products-completed operations" section.
📖 David's Claim Resolution
For David Martinez's claim above, his completed operations coverage responded to defend the lawsuit and ultimately paid $335,000 for the resulting damages to the home's interior and temporary housing costs.
However, it did NOT pay the $45,000 to repair his defective framing work - that came out of his pocket (more on this critical exclusion later).
Part of Your General Liability Policy
Completed operations isn't a separate insurance policy you purchase. It's built into every standard commercial general liability (GL) insurance policy.
When you buy GL insurance as a framing contractor, you automatically get both:
- Ongoing Operations Coverage - Claims during active work
- Completed Operations Coverage - Claims after work is finished
Why Framers Specifically Need This Coverage
Framing contractors face unique completed operations exposure for several critical reasons:
🏗️ Why Framers Are High Risk for Long-Tail Claims
- Structural Work = Hidden Defects: Unlike cosmetic trades, framing defects often don't manifest until months or years after completion
- Single Errors Can Cascade: One undersized beam or missing connection can affect entire buildings - 10, 20, or 50+ units in multi-family
- Extended Statutes: Most states allow claims 6-10 years after completion (some up to 15 years)
When Coverage Triggers (3 Criteria)
✓ Coverage Triggers When ALL 3 Conditions Are Met:
- 1. Work is Complete: "Complete" means substantially finished, even if final payment hasn't been made
- 2. Harm Occurs: Actual bodily injury or property damage - not just a defect
- 3. Caused by Your Work: Causal connection between your framing and the injury/damage
Occurrence vs Claims-Made Policies
| Feature | Occurrence Policy | Claims-Made Policy |
|---|---|---|
| Coverage trigger | When damage occurs | When claim is filed |
| Retroactive coverage | Covers past work if policy was active when damage occurred | Requires retroactive date; may not cover old work |
| Switching carriers | Simple - old policy covers old damage | Complex - requires "tail coverage" purchase |
| Best for framers | Recommended | Rare for contractors |
Why This Matters: With an occurrence policy, if structural damage from your 2023 framing work is discovered in 2028, your 2023 insurance policy responds to the claim - even if you've switched insurance carriers three times since then.
What Completed Operations Covers for Framers
Bodily Injury from Completed Work
Real Example: Floor Collapse from Undersized Joists
A two-story addition collapse 18 months after completion, injuring five people. One person suffered a traumatic brain injury.
- Medical expenses (5 parties): $485,000
- Lost wages and future earning capacity: $220,000
- Pain and suffering: $350,000
- Legal defense costs: $95,000
- Total claim: $1,150,000
Property Damage from Completed Work
Real Example: Water Intrusion from Framing Settlement
Wall framing settled due to insufficient foundation anchorage, causing the building envelope to separate and leak. Three years of undetected water intrusion.
- Mold remediation: $45,000
- Interior demolition and reconstruction: $125,000
- Structural engineer investigation: $8,500
- Temporary housing (4 months): $18,000
- Legal defense costs: $35,000
- Total property damage: $231,500
What's NOT Covered: The cost to re-anchor the framing ($12,000) is NOT covered due to the "your work" exclusion.
Defense Costs & Legal Protection
⚖️ Your Insurance Defends You
Your insurance company must provide a legal defense for any covered claim, even if the allegations are baseless.
Typical Defense Costs Paid by Insurance:
Critical Point: In most GL policies, defense costs are paid in addition to your policy limits. A $1M policy = $1M coverage PLUS defense funds.
What Completed Operations Does NOT Cover
The "Your Work" Exclusion (Most Important)
🚫 Critical Exclusion
Completed operations insurance does NOT cover repairing your own defective framing work. It ONLY covers resulting damages to other property or bodily injuries.
Example Breakdown: Truss Installation Error
You installed trusses with inadequate bracing. Two years later, the roof sags, causing:
- Cracked drywall throughout home: $18,000 - COVERED
- Damaged HVAC ducts: $12,000 - COVERED
- Ruined hardwood flooring from water: $28,000 - COVERED
- Homeowner's temporary housing: $15,000 - COVERED
- Cost to remove defective trusses and install properly: $45,000 - NOT COVERED
Total Claim: $118,000 | Insurance Pays: $73,000 | You Pay: $45,000
Other Standard Exclusions
Policy Limits Explained
Maximum paid for any single claim. If a roof framing failure causes $1.5M in damages, your policy pays $1M - you're responsible for the remaining $500K.
Maximum for ALL completed operations claims during your policy period. Once exhausted, no more coverage until renewal.
Coverage Limit Recommendations
| Contractor Type | Recommended Limits |
|---|---|
| Most framers (minimum) | $1M per-occurrence / $2M aggregate |
| Multi-family framers | $2M per-occurrence / $4M aggregate |
| Large commercial framers | $2M per-occurrence / $4M aggregate, plus umbrella |
Frequently Asked Questions
What is completed operations coverage for framers?
Completed operations coverage is insurance protection that covers bodily injury or property damage claims arising after your framing work is finished. It's included in standard general liability policies and protects you from liability for structural defects discovered months or years after completion.
Does completed operations cover fixing my own defective work?
No. The "your work" exclusion prevents coverage for repairing your own defective framing. However, completed operations DOES cover resulting damages to other property and third-party injuries caused by your defective work. For example, if improper framing causes water damage to finishes, the finish repairs are covered, but fixing the framing is not.
How long does completed operations coverage last?
Coverage continues as long as your general liability policy remains active, typically protecting you for 6-10 years after project completion based on state statute of repose laws. With an occurrence-based policy (the industry standard), the policy in effect when damage occurs responds to the claim, even if discovered years later.
What's the difference between occurrence and claims-made policies?
Occurrence policies cover damage that occurred during the policy period, regardless of when the claim is filed. Claims-made policies only cover claims filed during the policy period. For framers, occurrence policies are strongly recommended because structural defects often aren't discovered for years after completion.
Why is completed operations coverage especially important for framers?
Framing work is structural, and defects often don't manifest until months or years later when hidden behind drywall and finishes. A single framing error can cascade into catastrophic failures affecting entire buildings. States allow claims 6-15 years after completion, meaning you need long-tail protection that completed operations provides.
What policy limits should framers carry for completed operations?
Most framers should carry minimum $1M per-occurrence / $2M aggregate coverage. Multi-family and commercial framers should consider $2M per-occurrence / $4M aggregate plus umbrella coverage, as a single systematic defect affecting multiple units can quickly exhaust standard limits.
Conclusion: Protect Your Long-Term Liability
Completed operations coverage is essential protection for every framing contractor. Unlike finish trades where defects are immediately visible, your structural work creates years of potential liability exposure. A single claim discovered years after completion can exceed $1 million.
📋 Key Takeaways
- ✓ Completed operations is included in your standard GL policy - verify you have it
- ✓ Coverage protects against claims for 6-15 years depending on state laws
- ✓ The "your work" exclusion means you pay to fix defective work, but insurance covers resulting damages
- ✓ Multi-family framers face heightened exposure - consider higher limits
- ✓ Maintain continuous GL coverage even if semi-retiring - gaps leave past work unprotected
- ✓ Document everything with photos and inspections to defend against claims
Understanding completed operations coverage can mean the difference between a resolved claim and financial catastrophe. Review your policy with a construction insurance specialist to ensure you have adequate protection for your long-tail liability exposure.