Insurance: The Ten-year Civil Liability Of Craftsmen In 5 Questions

In France, all building craftsmen must subscribe to a ten-year civil liability guarantee. If you are among the builders affected by the Spinetta law, we offer you a comprehensive understanding of this mandatory insurance in 5 questions.

1- What is the purpose of the ten-year civil liability of craftsmen?

The ten-year civil liability guarantee is insurance that covers the repair of damages appearing up to ten years after the acceptance of the work.

This insurance allows the artisan builder to be covered in case of damage to a construction or renovation on which they have worked. It must be taken out before the start of the project to cover defects that were not detectable upon acceptance of the work.

A construction professional can indeed be held responsible for all damages that compromise the solidity of the structure or render it unsuitable for its intended purpose for a non-negotiable period of 10 years after the acceptance of the work.

2- Who is covered by this mandatory insurance?

In France, the law of January 4, 1978, also known as the Spinetta Law, made two insurances mandatory:
• the ten-year civil liability insurance for building contractors.
• the construction damage insurance for the project owner.

This law presumes the liability of building contractors whenever damage occurs to a building they have worked on. It thus requires all builders, companies or artisans, who carry out construction or renovation work to take out a ten-year insurance contract.

You are subject to this legal obligation if you are an artisan and you carry out construction or renovation work for a project owner. The ten-year guarantee concerns most building trades, such as masons, carpenters, roofers, electricians, plasterers-drywallers, plumbers, and tilers.

The only exceptions to this rule are:
• artisans who perform minor repairs, even though they remain responsible for these repairs in case of damage.
• subcontractors, who are not directly linked to the project owner. For them, this ten-year insurance is not mandatory, but it is strongly recommended to protect against potential lawsuits.

3- What damages are covered by the ten-year warranty?

The ten-year civil liability covers damages that could compromise the structural integrity of the building and/or its use for a period of 10 years after the completion of the work.

This guarantee is not affected by the builder's bankruptcy. Even if the company that carried out the work has gone bankrupt, the project owner can invoke this guarantee with the insurer whose contact details are on the insurance certificate provided by the builder.

This essential insurance for building craftsmen in France protects both construction professionals and their clients by ensuring a quick repair in case of serious defects that could affect the structural integrity of the building and make it uninhabitable or unsuitable for its intended use.

This coverage extends to hidden defects that appear after the completion of the work, even if the craftsman did not commit a deliberate fault, such as cracks in the foundations, waterproofing defects, and water infiltration...

4- What are the penalties for the absence of a ten-year guarantee?

Failure to comply with this insurance obligation exposes craftsmen to civil and criminal penalties. Any builder who does not take out ten-year civil liability insurance risks sanctions that can include up to 6 months of imprisonment and a fine of €75,000.

Note: It should be noted, however, that these sanctions apply only to professional builders. They do not apply to an individual who builds a home to occupy it themselves or to have it occupied by their spouse, ascendants, descendants, or those of their spouse.

5- What is the cost of this insurance for construction companies?

For construction companies in the startup phase, subscribing to a ten-year civil liability insurance can represent a significant financial burden, hence the importance of thoroughly comparing offers before purchasing this insurance.

Some insurance companies, like April, offer more advantageous rates for young businesses. Therefore, if you are an artisan affected by this legal obligation, you should ensure that you select only the coverage suited to your company's actual activity and compare several quotes.

Even though this professional insurance represents a considerable expense for a startup company, remember that this expenditure is a necessary investment to protect your business and ensure its long-term sustainability.