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Professional indemnity explained
Decennial liability insurance is cover for the strict ten-year liability that builders and designers carry for serious structural defects under civil-law regimes such as France's. It matters to UK firms working abroad because that liability does not depend on negligence, so a standard UK PI policy may not respond to it.
Part of: Professional indemnity insurance
In short
Several civil-law countries impose a ten-year liability on those who build or design a structure for defects that threaten its stability or make it unfit for use. In France this comes from article 1792 of the Code civil and is backed by compulsory insurance under the Code des assurances. The liability is strict: the claimant does not have to prove negligence. UK professional indemnity insurance is usually negligence-based, claims-made and annual, so it is not a straight substitute. UK architects, engineers and contractors on overseas projects should check local rules, the territorial and jurisdiction limits of their PI, and whether a project-specific decennial policy is needed.
Decennial liability is a statutory, no-fault liability that lasts ten years from acceptance of the works. Under article 1792 of the French Code civil, every constructeur of a work is liable as of right (de plein droit) to the owner or purchaser for damage, including damage from defects in the ground, that compromises the solidity of the work or makes it unfit for its intended use. The constructeur escapes liability only by proving the damage came from an external cause.
The French definition of constructeur in article 1792-1 is broad. It includes architects, contractors, technicians and others bound to the owner by a contract for the works, which is why designers as well as builders are exposed. Article 1792-2 extends the presumption to equipment that cannot be removed or replaced without damaging the foundations, structure, enclosure or roof. The ten-year period itself sits in article 1792-4-1.
The French regime is the best known, but it is not unique. Several other civil-law systems, including a number in the Middle East, have comparable ten-year liability rules for contractors and designers in their civil codes. The details, the parties caught and the insurance requirements differ, so local legal advice is essential before you sign.
France backs decennial liability with two layers of compulsory insurance in the Code des assurances.
| Layer | Who buys it | What it does |
|---|---|---|
| Responsabilité civile décennale (article L241-1) | Each constructeur, including designers | Covers the constructeur's own decennial liability; compulsory for those caught by article 1792 |
| Dommages-ouvrage (article L242-1) | The owner or developer, before work starts | Pays for repair of decennial-type damage without first establishing who is at fault, then recovers from the liable parties' insurers |
| Garantie de parfait achèvement | Contractor obligation | One year after acceptance, the contractor must remedy reported defects |
| Garantie de bon fonctionnement | Contractor obligation | At least two years for other separable equipment |
The dommages-ouvrage insurer must decide on cover and make an offer within fixed deadlines set in article L242-1, which is why owners favour it. The insurer then pursues the décennale insurers of whoever caused the defect. A UK designer on a French project should therefore expect to be asked for evidence of décennale cover, not just a PI certificate.
The UK has no general decennial regime. Claims against designers usually run in contract or negligence, with limits set by the Limitation Act 1980 and the Latent Damage Act 1986. For dwellings, the Defective Premises Act 1972 now allows 15 years for future work after the Building Safety Act 2022.
| Feature | Decennial liability insurance | UK professional indemnity | Inherent or latent defects insurance |
|---|---|---|---|
| Basis | Strict liability, no negligence needed | Negligence or breach of professional duty | First party, no fault needed |
| Term | Ten years from acceptance, often one policy per project | Annual, claims-made | Usually 10 or 12 years per building |
| Who is protected | The constructeur, so the owner is paid | The professional | The owner and successors |
| Typical trigger | Damage to solidity or fitness for use | A claim alleging negligent service | Defined structural or waterproofing damage |
In the UK, inherent defects insurance and latent defects insurance play a role closer to dommages-ouvrage. They protect the building owner, not the designer, and they usually reserve rights to recover from negligent parties, which brings the claim back to the designer's PI.
A Bristol structural engineer designs foundations for a client's holiday home in France. Ground movement causes cracking eight years later. French law treats the engineer as a constructeur, so liability can arise without proof of negligence. If the engineer's UK PI excludes work in France, or does not respond to strict liability, the engineer may be uninsured unless décennale cover was arranged.
A UK architect is appointed as lead designer for a hotel abroad, under a contract governed by local law that applies a ten-year joint liability for collapse or structural defects. The architect's PI covers worldwide work but excludes claims brought in certain courts. The territorial and jurisdiction clauses decide whether a claim there would be covered, so they must be checked before appointment.
A UK contractor that designs and builds abroad faces decennial liability as both builder and designer. Its contractor's PI covers negligent design, but the strict element and the build defects may need a separate project policy.
More on core cover is on the professional indemnity insurance page. Apex arranges professional indemnity for UK designers and contractors, including overseas work; a broker reads every enquiry.
It is insurance for the ten-year strict liability that builders and designers carry for serious structural defects under some civil-law systems, such as France's. It pays when the work's solidity is compromised or it becomes unfit for use, without the owner having to prove negligence, subject to the policy terms.
Not automatically. UK PI is usually negligence-based, claims-made and annual, and may limit territory and jurisdiction. Strict decennial liability abroad may fall outside it, so UK firms often need a project-specific policy or an extension agreed with insurers before the work starts.
If they act as a constructeur on a French project, they are likely to fall within French decennial liability and the compulsory insurance rules in the Code des assurances. Take French legal advice and speak to your broker before signing the appointment.
Decennial insurance protects the liable builder or designer against strict ten-year liability. Inherent defects insurance is a first party policy for the owner, paying for defined structural damage without proving fault. Inherent defects insurers usually reserve rights to recover from negligent parties.
It runs from acceptance of the works, known as reception, rather than from the date the design was produced. That means a designer's exposure can last well over ten years from their own involvement, so cover needs to stay in place for the whole period.
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Get a PI quote Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
