Decennial liability

Decennial liability, in the sense described here, is the insurance sometimes called decennial liability insurance or inherent defect insurance, taken out by the contractor or principal to cover costs associated with the potential collapse of a building after completion. The name comes from the ten year period, a decade, after completion of the project that it covers. Insurance is compulsory in a few countries such as France and Egypt, while in others such as Qatar there is a form of strict liability arising from the French Civil Code that requires no proof of fault but carries no compulsory requirement to insure. Under French law every builder must buy a ten-year policy covering the mandatory decennial warranty, a legal liability for defects that compromise the integrity of a structure or make it unsuited to its intended purpose, imposed under Article 1792 et seq. of the Civil Code from the date the structure is accepted. The cost of the insurance can significantly increase construction costs.