Protect Your Future with Discontinued Operations Liability Coverage

Written by Ashley Surinak
Written by Ashley Surinak

Insurance doesn’t have to be boring. That’s why we hired Ashley Surinak to be our BA insurance writer. Ashley specializes in making mundane subjects hella-entertaining.

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"Occurrence" policies are the most misunderstood liability coverage policies in all insurance. Many (wrongly) think that the policy provides endless coverage if it was held when you sold the product or finished the work.

However, this isn't the case. 

Read on to learn what "boom" insurance is, how it works, and how to stay protected after you discontinue operations.

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What Is an "Occurrence" Liability Policy?

Commercial general liability insurance is triggered by an "occurrence." Many people think this means they have coverage "forever into the future." 

However, this isn't true.

What is true is that an “occurrence” policy could provide coverage for accidents due to your products or completed work that happen well after the policy was in force. However, the policy also says that for insurance to apply, the “bodily injury” and/or “property damage” must occur during the policy period.

When Does a "Boom" Policy Cover Incidents?

The "during the policy" part eliminates the whole "forever" idea of the policy. Just because you had insurance when you sold the product or finished the service doesn't mean you're covered indefinitely. 

Bottom line: You still need to hold the policy when the damage happens. Another way to think about this is: "Was I paying for discontinued operations coverage when the [insert whatever here] went boom?"

If you were, you're covered. If you weren't, you're not.

Why You Need Discontinued Operations Liability Insurance

Whether you stop doing business or something else comes up, liability for what you've done doesn't just disappear. And since commercial general liability doesn't cover incidents that happen after you stop paying for it, you need another solution.

This is what discontinued operations liability insurance coverage is for.

A discontinued operations policy will continue to provide liability insurance to you even after your interest in a business ceases. Your Trusted Choice® insurance professional can help tailor a discontinued operations liability insurance to your needs.

You shouldn't leave your future hanging in the balance. Discontinued operations insurance ensures that you don't.

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