What is products-completed operations aggregate?

The products-completed operations aggregate is one of the two aggregate limits on a standard CGL policy, and for tree service companies it deserves as much attention as the general aggregate. While the general aggregate caps the policy's total payouts for claims arising from ongoing operations, the products-completed operations aggregate separately caps claims arising from work you have already completed or products you have sold.

For tree services, 'completed operations' is the relevant exposure. Once your crew finishes trimming, removing, or treating a tree and leaves the job site, any subsequent claim arising from that work falls under completed operations. If a pruning cut leads to structural failure of a branch three months later, that is a completed operations claim. If a tree your crew removed had roots that were left in place and later heaved a sidewalk, that is a completed operations claim. If a tree you treated with pesticide later dies and the client claims your treatment was negligent, that is a completed operations claim.

The standard CGL policy provides a products-completed operations aggregate of $2,000,000 — the same as the general aggregate. These two aggregates are independent: a $1 million completed operations claim reduces the products-completed operations aggregate to $1 million but does not affect the general aggregate. Conversely, a $1 million ongoing operations claim reduces the general aggregate but leaves the products-completed operations aggregate intact. This separation is a valuable feature because it ensures that claims from your current operations do not eat into the limits available for claims from past work.

Many commercial contracts require you to maintain products-completed operations coverage for a specified period after the work is completed — often two to five years. This means you cannot cancel or remove this coverage until the contractual obligation expires. Some carriers offer an option to exclude products-completed operations to reduce premium, but accepting this exclusion eliminates coverage for all claims arising from completed work, which is a dangerous gap for any tree service. The premium savings (typically 5 to 15 percent of the GL premium) rarely justify the exposure.

Additional insured endorsements for completed operations (ISO CG 20 37 or equivalent) extend your products-completed operations coverage to your clients. This is increasingly required in commercial contracts and ensures that if a claim arises from your completed work and the client is also named in the suit, your policy responds. Verify that your blanket additional insured endorsement includes completed operations coverage — not all versions do. The distinction between CG 20 33 (ongoing operations only) and CG 20 37 (completed operations) is critical.

Monitor your products-completed operations aggregate alongside your general aggregate throughout the policy year. If completed operations claims begin to erode this aggregate, discuss with your broker whether an umbrella or excess policy provides adequate backup, or whether increased underlying limits are warranted at your next renewal.