After a product sale is completed or construction is finished, covers liability for third-party bodily injury or property damage arising while the product or facility is in operation. An extension of CGL; essential for exports and plant construction.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
A manufactured product, after delivery is completed (Completed Operations), or construction after it is finished, is covered for the liability that then arises. Where premises liability (CGL) covers incidents during construction and occupation, this product covers post-operation incidents. Essential for overseas plant EPC contracts.
Liability during operation after completion
Local incidents after sale
Facility-operation incidents after completion
| Overseas extension | Local law and currency basis |
|---|---|
| Vendor only | Subcontractors as combined insureds |
| EPC combined | Design + build + operation in one |
| Policy period | 1 year (Claims-Made + Extended Reporting) |
|---|---|
| Insurers | Hyundai |
| Limits | Per claim KRW 1–20bn |
| Turnaround | 2–4 weeks |
Around 0.2–1% of revenue or order value. Overseas plant and export business is linked to reinsurance.
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Risk after completion or delivery — five sector patterns
Incidents after completion of EPC projects such as plants, power stations and refineries. The area where general PL cover ends the moment construction finishes.
Incidents during the operation stage after delivery of manufacturing equipment or automation lines. The cover trigger in the wording must be checked, separately from the warranty period.
Defects during operation after delivery of network, SaaS or industrial control systems (ICS). The PL-extension area for the digital domain.
Defects during operation after delivery of vessels or offshore platforms. A territory-extension endorsement is essential.
Defects during the operation stage after delivery of aircraft, satellites or drones. Global territory and a long cover trigger are key.
A plant EPC contractor handed the project over to the owner holding only a general PL policy at completion. A year into operation, defects were found in some equipment and caused third-party loss; but because the general PL cover trigger ended with the end of construction and no products & completed operations policy was held separately, confirming cover took time. This case shows that combining the two policies is effectively the standard in industries with long post-construction operation such as EPC.
Source: (General industry example) · Commercial insurance from the field #upcoming
Read the full analysis — the post-EPC cover-trigger issue (in progress)The wording and structure points decision-makers most often overlook
General PL usually ends its cover trigger when construction or delivery is completed. The gap between when an incident occurs and when it is discovered can make it ambiguous which wording responds, so the Discovery-based and Occurrence-based wording structures should be checked in advance.
The base wording usually covers only incidents within Korea. For global business such as overseas EPC, plants and exported machinery, a territory-extension endorsement or a combined global PL is essential, and wordings differ considerably by territory.
Incidents during construction fall under construction liability (CGL), incidents after completion under completed-operations cover, and incidents to leased assets under tenant liability. Where the timing or scope is ambiguous, the order in which each wording responds should be checked.
The questions asked most when considering products & completed operations cover
General PL's core scope is third-party compensation from a product defect, while products & completed operations is a complementary wording covering incidents arising after product delivery or work completion. It covers risk after general PL's cover trigger ends, and is usually designed together in EPC, plant and export manufacturing.
Cover begins from the product-delivery date or work-completion date (usually completion or commissioning), and the end basis differs by wording. A Discovery-based wording judges cover by when the incident is discovered, an Occurrence-based wording by when it occurs.
It is not statutorily mandatory, but in industries with large post-construction operation risk such as EPC, plant and machine installation, it is a complementary wording that is effectively close to essential. Owners often require it as a contract condition, and in export EPC a territory-extension endorsement is usually combined.
The base wording usually covers only incidents within Korea. For overseas EPC and plant business, a territory-extension endorsement or a design combined with global PL is needed separately, and the extendable scope and additional premium differ by insurer.
Construction liability (the construction-work wording within CGL) has incidents during construction as its core scope, while products & completed operations has incidents after completion as its core scope. Cover is divided by timing, and combining the two is needed to cover risk both during and after construction.
It is not statutorily mandatory. However, it is sometimes effectively required under EPC/plant and export contracts with owners, or some industrial-convergence certification requirements, so combining it is usual in practice.
The insurer calculates it based on project size, sector (plant, machinery, system integration, etc.), extent of territory extension, past claims history, and construction/QC systems. The exact premium and acceptance are confirmed after underwriting by insurers such as AIG, Chubb, DB, Hyundai, KB and Meritz.
