What Plumbing Contractors Should Know About Completed Operations Claims

A plumber finishes a repipe, tests it, and moves on. Three months later a fitting fails behind a wall and floods two rooms. That claim is a completed operations claim, and for plumbing contractors it is one of the most important exposures to understand.

How coverage generally works

Commercial general liability usually includes products–completed operations coverage for bodily injury and property damage arising from your work after it has been completed. Many policies have a separate aggregate limit for this. Under many standard forms, damage your work causes to other property may be covered, while the cost of fixing your own faulty work generally is not. Policy wording, endorsements, and exclusions control the outcome.

Why plumbing is especially exposed

• Water damage often develops slowly and is discovered late
• Installations are hidden behind walls, under slabs, and in ceilings
• High-value finishes and contents magnify the damage
• New construction can create claims years later

Contracts extend the exposure

Builders and general contractors often require additional insured status for completed operations, sometimes for a set number of years after the project. Your policy needs the right endorsement for that to be honored.

Changing policies

When you change insurance companies, completed operations coverage for past work generally comes from the policy in force when the damage occurs — not when you did the work — under typical occurrence policies. Keeping continuous coverage matters. Gaps can leave past work uninsured.

Reducing the risk

• Pressure-test and document your work, with photos before closing walls
• Use quality materials and follow manufacturer instructions
• Keep job records, including permits and inspections
• Respond quickly to customer callbacks
• Report potential claims promptly to your insurance company

See general liability for Texas plumbers.