A completed operations liability exposure differs from a products liability exposure in that it

A completed operations liability exposure differs from a products liability exposure in that it

• A. Is based solely on strict liability rather than negligence or strict liability.
• B. Arises out of the entity's completed work, including defective parts or materials furnished with the work.
• C. Arises out of the entity's defective product, whether or not it has been installed as part of the finished work.
• D. Is based solely on negligence and breach of warranty rather than strict liability.

Answer: (B)

Completed operations liability covers damages that result from the insured’s work after the project is finished, including defective parts or materials furnished with the work. It focuses on liability arising from the completed project itself, not from the product as a standalone item. This is different from products liability, which attaches to the product itself—defects in the product, regardless of whether it has been installed as part of the finished work. So the best description is that completed operations arises out of the entity’s completed work, including defective parts or materials furnished with the work. The other statements misstate the basis of liability or confuse the product with the completed project.

Completed operations liability covers damages that result from the insured’s work after the project is finished, including defective parts or materials furnished with the work. It focuses on liability arising from the completed project itself, not from the product as a standalone item. This is different from products liability, which attaches to the product itself—defects in the product, regardless of whether it has been installed as part of the finished work. So the best description is that completed operations arises out of the entity’s completed work, including defective parts or materials furnished with the work. The other statements misstate the basis of liability or confuse the product with the completed project.