French Insurance Code
In forceSTANDARD CLAUSES APPLICABLE TO COLLECTIVE TEN-YEAR LIABILITY CONTRACTS TAKEN OUT ON BEHALF OF SEVERAL PERSONS SUBJECT TO THE INSURANCE OBLIGATION REFERRED TO IN ARTICLES L. 241-1 AND L. 241-2, IN ADDITION TO INDIVIDUAL CONTRACTS COVERING THE TEN-YEAR LIABILITY OF EACH OF THESE PERSONS
Type of cover
The policy covers payment for repairs to the work to the completion of which the insureds, named in the Declarations, have contributed, as well as to existing works, fully incorporated into the new work and which become technically indivisible from it, within the meaning of II of article L. 243-1-1 II of this code, when the liability of one or more of the insureds is engaged on the basis of the presumption established by articles 1792 et seq. of the Civil Code in relation to construction work, and within the limits of this liability.
Repair work, particularly in the event of replacement of the works, also includes any demolition, clearing, removal or dismantling work that may be necessary.
Amount of cover (standard clause applicable only to contracts
covered by article L. 243-9 of this code)
In the case of building work intended for use other than as a dwelling, the amount of the guarantee is established in accordance with the procedures set out in the special conditions and may not be less than the total cost of the building work declared by the client or the amount provided for in I of article R. 243. 3 of this code, if the total cost of the building work declared by the client exceeds this amount.
The special terms and conditions specify the procedures for reinstating cover after a claim.
The total cost of the building is defined as the final cost of all the work involved in the construction, including all revisions, fees, taxes and any additional work. This cost includes the value of rebuilding existing buildings that are fully incorporated into the new structure and that become technically indivisible within the meaning of II of article L. 243-1-1 of this code. Under no circumstances may this cost include any premiums or bonuses granted by the project owner for faster completion than that stipulated in the contract, nor may it be reduced by penalties for delay imposed on the contractor responsible for exceeding the contractual completion deadlines.
This cover is adjusted in accordance with the terms and conditions set out in the Declarations, to take account of changes in construction costs between the date on which the contract is taken out and the date on which the claim is settled.
Duration and maintenance of cover
For the duration of the insured's liability under articles 1792 et seq. of the Civil Code, the policy covers the construction work on the structure named in the Declarations.
The cover relating to this work is maintained in all cases for the same duration, without payment of a subsequent premium.
Excess under this policy
For each of the insured persons, the policy covers the amount of repair work in excess of an absolute excess defined in the Declarations Page, which is equal to the cover limit of the individual policies taken out by each of the insured persons, after adjusting this limit as necessary.
The excess applies to everyone.
The insured undertakes to cover the portion of the risk constituted by this excess by one or more individual ten-year liability insurance policies providing cover at least equivalent to that set out in the standard clauses mentioned in Annex I to Article A. 243-1 of this Code. This excess is revalued according to the same terms and conditions as those set out in the individual policy conditions for the amounts of cover provided by these policies.
Exclusions
Cover under this contract does not apply to damage resulting exclusively from :
a) The intentional act or wilful misconduct of the policyholder or the insured ;
b) The effects of normal wear and tear, lack of maintenance or abnormal use;
c) an external cause.
Forfeiture
The policyholder forfeits all rights to cover in the event of inexcusable failure to comply with the rules of the trade, as defined by the regulations in force, the approved French standards or the standards published by the standardisation bodies of another Member State of the European Union or another State party to the Agreement on the European Economic Area, offering a degree of safety and durability equivalent to that of the French standards.
For the purposes of this disqualification, the insured is understood to be either the policyholder who is an individual, or the head of the company or the statutory representative of the company in the case of a company registered in the trade register, or the legal representatives or duly authorised representatives of the insured in the case of a legal entity.
This forfeiture is not enforceable against the beneficiaries of the indemnities.
