Prevent your yard from being shut down. Take care of your civil liability insurance for contractors!

Many contractors do not yet meet the new insurance requirement for ten-year civil liability, which has been in force since 1 July 2018. As a result, they risk not being allowed to start new works and to have to shut down current yards. However, the consequences for them depend very much on how they are currently insured. In addition, not every contractor must be able to provide insurance for every project. What exactly does this mean for your contracting company? You can read it here.

The new law in a nutshell

With the new law, the obligation to insure ten-year civil liability will be extended. For the construction or renovation of houses and apartments in Belgium where the intervention of an architect is legally required, not only architects but also contractors must now take out an insurance policy against decennial liability. It is up to the architect to check whether the contractor’s insurance certificate is in order before work starts.

Exceptions to ten-year civil liability for contractors

The new law only applies to a private construction project which requires the assistance of an architect. In addition, (total) contractors and construction promoters can take out a general yard policy which insures all participants in the yard (and the costs of which may subsequently be shared among the various participants). The main advantage of such a yard policy is that only one insurer has to be contacted in the event of incidents.

Note: instead of the contractor, the client can also take out the general yard policy himself.

Subscription formula or insurance per project?

You can choose freely, but most contractors take out 10-year civil liability insurance using a subscription formula instead of project-by-project insurance. In this way, they avoid problems if they accidentally forget to declare a yard.

How to take out the insurance correctly

How contractors are to take out ten-year civil liability depends on whether they choose a subscription formula or insurance for each project.

• Subscription formula: the contractor gives an overview of the yards he expects to realize or has realized in the past year, as well as the value of each yard. On the basis of this, the insurer will calculate an advance premium. At the end of the insurance year, a settlement will be made.
• Insurance per project: the contractor indicates the value of the yard and specifies the work to be carried out. The insurer will then determine the amount of the premium on the basis of this information. Attention: please communicate the yard in good time! A quotation from an insurer does not count as an insurance certificate.

Quickly find the insurance that suits you best

Comparison pays off, but that doesn't mean you have to spend time on it yourself! ADD has mapped out the entire insurance market for ten-year civil liability for you. As a result, we have a clear overview of which insurer best endorses your type of contract work and you are always assured of a correct rate.

Questions? Feel free to contact our insurance architects.