What is a discontinued operations policy?
A discontinued operations policy provides products/completed operations liability coverage after a business is closed. It also can provide specific coverages for just one portion of a business that has closed.
How Long Does completed operations coverage last?
Extended Completed Operations Coverage One of the regional school system’s insurance requirements as the school’s owner is that the general contractor must purchase completed operations coverage for a period of 10 years beginning after the project is completed.
What is extended completed operations coverage?
The extended completed operations coverage is a non-standard endorsement that states the general contractor’s completed operations coverage will continue beyond the policy expiration and continue for 10 years after substantial completion of the construction project.
What damages are covered by a CGL policy?
A Commercial General Liability (CGL) policy protects your business from financial loss should you be liable for property damage or personal and advertising injury caused by your services, business operations or your employees. It covers non-professional negligent acts.
What is the accounting treatment for discontinued operations?
Discontinued operations is an accounting term for parts of a firm’s operations that have been divested or shut down. They are reported on the income statement as a separate entry from continuing operations.
What happens to subsequent CGL policies when insureds learn of continuing injury or damage?
In the beginning of this article, we asked “Is a CGL policy triggered when progressive injury or damage continues into the policy period even after the injury or damage has manifested itself and is discovered?” With the known injury or damage wording, the answer is now very clear: coverage ceases for all subsequent CGL …
What does products and completed operations mean in insurance?
What Is Products-Completed Operations Coverage? Products-Completed Operations Coverage helps cover liability claims resulting from your business’ product or completed operations that were done away from your location. It can help cover claims that your business caused bodily injury or property damage.
How do you record discontinued operations?
Write “Income (loss) from discontinued operations, net of tax” in the account column on the first line of the section. Write the amount of after-tax operating income or loss the discontinued component generated during the accounting period in the amount column.