Ongoing and Completed Operations – It is standard practice for an already listed additional insured contractors to require that coverage to extend to ongoing and completed operations. This practice protects the contractor and owners from losses that occur during the course of construction, as well as claims arising out of the completed project (damages found after the project is completed). Often times, damage resulting from a subcontractor’s work isn’t apparent for years after the work has been completed. When that claim occurs, a suit is often filed against both the general contractor and the subcontractor, and the general contractor will tender the defense back to their subcontractor. Thus, the reason for the requirement. They are “building walls of defense” to hurdle through before the claims actually need to payout through their own policy and be counted as a loss against them.
Jan 072022