Decennial insurance in France

What is FOS?
Freedom Of Services (FOS) allows an authorized insurer in one of the 31 countries of the European Economic Area (EEA) to offer services in another EEA State. The construction companies from the European Economic Area (EEA), wishing to work in France, need in excess of their usual domestic insurance covers a specific French cover: the decennial liability. They can use their domestic insurer or search a local insurer in France. If they use their domestic insurer, they have to check if the insurance company is allowed to insurer the risks in France according to the Freedom of Services (FOS) system.
But working in France for construction companies require a specific cover: the decennial liability

The decennial liability is a protective mandatory guarantee starting usually at the handover of the construction and its application has been widely extended by law cases. However, the apparent simplicity of this approach is quite blurred by the complex interpretations of the guarantees and the different liabilities related to the construction law

In France
The contractual decennial liability is related to the public safety rules and the French code of construction. The principle of the presumption of liability for a compulsory period of ten years by law guarantees for the different participants to the construction (architects, constructors, etc.) a physical and financial cover.

How to apply for a decennial liability insurance?
Before starting working in France, you will be asked for a decennial certificate, the proof of an insurance policy
As a construction company, you can ask your national insurer to cover the decennial liability option for your operations in France. If the decennial coverage is not part of your local insurer guidelines, you have to write the decennial coverage in France.

Who is concerned?
Any entrepreneur, technician, architect or any other person related to the contractor must provide a decennial liability in order to be authorized to work in France.

Two options are available to you:
Work on international contracts from your own country: insurance companies must provide you with a decennial coverage through the FOS process.
Set up a subsidiary in France

Insurance companies will provide you with the appropriated cover locally.

Decennial liability insurance: required information for insurers
Generals informations:

Company business name /Last name – First name
Head office address / Domicile
Commercial registry or trade association registration numbers
EU VAT numbe

Length of service - Experience
Company creation date / Start of professional activity in the construction sector
Training of technical engineers
Professional experience (as independent contractor or salaried employee)
Any qualifications/certifications held (type and reference)

• Total number of company employees
• Net revenues Construction work € …., of which €… in France
• For each of the previous two years as well as an estimate for the current year
• Type of work performed

Project description
• Project address
• Estimated dates for start/completion times of work
• New project / renovation
• Type of work (individual home, multi-family housing, office space / commercial, other)
• Presence of a project manager?
• Nature and amount of service performed (market segment for the project / itemised estimate to be furnished)
• Total project cost, net of taxes

Our experience of the French market
If your stream of work is large enough, it will be easier to insure a registered subsidiary in France with a decennial coverage based on your local turn-over.
For any further information, please contact us