Products-Completed Operations Aggregate

The products-completed operations aggregate is a distinct bucket of coverage on your GL policy, separate from the general aggregate. It specifically covers claims that arise after you have finished and left a job site — what the industry calls "completed operations." For tree service companies, this is where claims land when a stump removal leads to ground subsidence weeks later, or when a pruning job results in a branch failure months down the road.

A standard GL policy might show limits of $1M per occurrence / $2M general aggregate / $2M products-completed operations aggregate. The products-completed ops aggregate works just like the general aggregate but only applies to completed work claims. This means you have a full $2 million available for claims from finished jobs, independent of whatever claims are eroding your general aggregate from ongoing operations.

Tree service companies should never allow a carrier to reduce or eliminate the products-completed operations aggregate. Some carriers, particularly in the E&S market, will try to attach an endorsement excluding products-completed operations coverage entirely. This leaves you completely exposed to claims arising from work you have already finished and been paid for — which is a significant portion of your liability exposure.

Many commercial contracts require you to maintain products-completed operations coverage (and by extension, an adequate aggregate) for one to five years after the project ends. If your products-completed ops aggregate is set too low, a single large completed operations claim could exhaust it and leave subsequent claims unfunded.