If you manufacture, sell, or distribute a product, there is the possibility that it could cause bodily injury or property damage for which you would be legally liable. Even if you only sell or distribute the product, you could still be liable depending on the circumstances.

If you provide a tangible service, such as installing heating systems, there is the risk that negligence could result in damage caused by your work after your work is done (a completed operation). For example, a contractor installs a steam heating system, and three months later it leaks and causes property damage.

The "products completed operations" hazard covers each of the above risks under certain conditions.

When a product is involved, to be covered, the injury or damage must occur away from your own premises, unless your business includes the selling, handling, or distribution of your product for consumption on premises you own or rent.

With respect to property damage as the result of completed operations, property damage means physical damage to tangible property, including loss of use of that property. Intangible property, such as digital data, would not be covered.