Construction Liability

Insurance in the construction sector in France is a significant market, as the client, the design and construction team, and the project owner must each purchase coverage. All forms of liability, with the exception of criminal liability, are insurable, and generally, the insurance companies of the parties involved handle any disputes. The Spinetta Law of 1978 requires that all parties involved in a construction project take out appropriate insurance before construction begins.

If an architect is involved in the construction, the architect must ensure that the client, the project owner, contractors, subcontractors, and suppliers are all properly insured.

The client (project owner) must assume ten-year liability, and a policy known as Dommages Ouvrage or “DO” (insurance for the client) provides such coverage. This guarantees the “pre-financing” of repairs in the event of damage rendering the structure unfit for its intended purpose.

By law, no limit may be set on this type of contract, so that the insured is always able to obtain the funds necessary to complete the project. Its purpose is to finance any reconstruction or repair work prior to the allocation of liability under the at-fault party’s insurance contract. All