Ten-year liability insurance for the construction sector: Vanbreda offers a policy combined with mandatory certificates

On 9 June, the Belgian Official Journal published the law on the mandatory ten-year liability insurance for contractors, architects and other service providers in the construction sector. The impact of this new regulation, which comes into effect on 1 July 2018, is huge. For this reason, Vanbreda Risk & Benefits has developed an all-in solution which combines taking out the new mandatory policy and receiving all the accompanying certificates at the same time.

Ten-year liability insurance for the construction sector

The new legislation means it is mandatory for all contractors, architects and other such construction sector workers (such as engineering firms) to take out a ten-year liability insurance when constructing or renovating a building intended for residential purposes.

The mandatory insurance covers the liability of all contractors, architects and other construction sector workers for ten years following acceptance of the work for defects which impair, or could impair, the stability of the building or an important component of it.

The insurance obligation applies to works for which the final planning permission will be granted after 1 July 2018.

New administrative obligations

The new law also signifies important administrative obligations for the various workers in the construction sector:

  • Contractors, architects and other service providers must have an insurance certificate before beginning any work. No work can go ahead without this certificate.
  • The architect is obliged to check whether all the necessary insurance certificates have been obtained. If they do not do so, then they put their professional indemnity at risk.
  • The RSZ (Rijksdienst voor Sociale Zekerheid [Royal Service for Social Security]), money lenders and notaries (in the case of subsequent sales) should check that the certificates are available.

If the above-mentioned obligations are violated, criminal fines ranging from €26 to €10,000 may be charged.

Vanbreda offers an all-in solution

Vanbreda Risk & Benefits is the Belgian market leader in terms of construction sector insurance solutions and, because the new ten-year insurance involves a lot of (administrative) obligations for all construction sector workers, we have come up with an all-in solution. This consists of three important elements:

    1. For each construction sector worker, we look for the most affordable policy. Being in the position of market leader means that we can negotiate the best guarantees and prices with insurers.
    2. We look at the various insurance policies which apply to the construction project and match them together. In this way, we ensure that there are no overlaps and that discounts can be granted on certain policies.
    3. In addition to offering the most affordable insurance policy, we also guarantee to deliver all the required certificates to our customers in a proactive and straightforward manner. Not only do we ensure that they are well protected, we also guarantee that they are in line with the new legislation, that the works do not result in unnecessary delays due to a lack of certificates and that any fines are avoided.

Are you interested in our all-in solution concerning the new mandatory liability insurance in the construction sector? Contact our experts.

Are you a working for an SME? Our experts Laura Roelant (laura.roelant@vanbreda.be) or Eli Hemelaer (eli.hemelaer@vanbreda.be) will be happy to help you.

Are you a government body or a social profit organisation? Contact celine.janssens@vanbreda.be.

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