What happens if the firm that did your works has gone bankrupt?

You discover a defect in some recent works, you go to contact the firm… and you learn that it has been wound up. There's no need to panic: French ten-year (décennale) liability is designed precisely for this kind of situation. This article is for you, the private individual owner, to explain how to activate the cover even if the firm no longer exists.

The principle: ten-year liability is attached to the works

This is one of the great achievements of the loi Spinetta of 4 January 1978 (the French construction insurance law). Ten-year liability is taken out by the firm at the time of the project, but its scope covers the works themselves for 10 years, regardless of what becomes of the firm.

Practical consequences:

The firm closes: the ten-year cover can still be activated
The firm changes its name or legal form: the original ten-year cover can still be activated
The tradesperson retires: the original ten-year cover can still be activated
The tradesperson dies: the original ten-year cover can still be activated

The only thing that matters is the insurance certificate issued for the project concerned. As long as the insurer can be identified, recourse is possible.

Step 1: find the ten-year certificate

This is the key element. Without it, identifying the insurer becomes much harder (but not impossible). Look in several places:

Your personal records

The certificate should normally have been given to you by the tradesperson before you signed the quote. It may be found:

In your "works" folder (quotes, invoices, plans)
With your works handover report (PV de réception)
In your emails (often sent as a PDF)
In your mortgage file (the bank often required it)

With the notaire

If the works were carried out in connection with the purchase of a new or recent property, the notaire (notary) has usually kept a copy of the certificate. They can send it to you on simple request.

From the previous seller

If you bought the property after the works, the seller is required to hand over to you the ten-year certificates still in force (article L271-4 of the French Construction and Housing Code / Code de la construction et de l'habitation).

From the Dommage Ouvrage insurer

If Dommage Ouvrage insurance was taken out for the works, your Dommage Ouvrage insurer probably already knows the identity of each contractor's ten-year insurer.

Step 2: if you have Dommage Ouvrage, turn to it

Dommage Ouvrage (DO) insurance is mandatory for any client who has a building constructed or has major works carried out. In practice, many private individuals fail to take it out — which is risky.

If you have it, that is the one to turn to first. Decisive advantages:

Rapid compensation, without waiting for a decision on liability
Dommage Ouvrage then itself turns against the ten-year cover of the failed firm
You don't have to hunt for the firm's insurer — Dommage Ouvrage takes care of that

The claim must be filed within the deadline set in the contract (generally 5 working days from discovery of the defect).

Step 3: without Dommage Ouvrage, contact the ten-year insurer directly

If you have no Dommage Ouvrage, or if your works don't fall under it, you must contact the failed firm's insurer directly.

The recommended procedure

Write a registered letter with acknowledgement of receipt addressed to the insurer
State the policy number, the firm's registration number (SIRET) and the date of the project
Enclose a copy of the ten-year certificate, the quote, the handover report and the invoices
Describe the defect precisely, with dated photos
Request that an adversarial expert assessment be arranged

The insurer is in principle bound by a deadline to reply to you. In the event of silence or refusal, you can refer the matter to the insurance ombudsman (médiateur de l'assurance) and, failing that, to the courts.

Step 4: if you can't find the certificate

This is the trickiest situation, but it's not hopeless. Several avenues:

The liquidator

If the firm went through insolvency proceedings, a liquidator (mandataire liquidateur) was appointed. They normally hold the company's insurance files. You can contact them via the BODACC (the official gazette of civil and commercial announcements) or the chamber of commerce.

Professional bodies and chambers

For certain professions (architects, surveyors), a professional body keeps insurance information on file.

The courts

As a last resort, an action before the civil court (tribunal judiciaire) may, through an investigative measure, allow you to obtain disclosure of the insurance contract via the professional databases.

Special case: a failed subcontractor

If you engaged a main contractor who subcontracted part of the works, the failure of a subcontractor is not a problem for you: the main contractor remains jointly and severally liable to the client. It is they (or their ten-year insurer) who must answer for the defect.

This rule protects you even if you were unaware of the subcontractor's identity.

What if the insurer disputes its cover?

Several situations may lead an insurer to refuse cover:

Non-payment of premiums by the firm at the time of the claim
An activity not declared in the certificate
False declaration by the firm when the policy was taken out
Works carried out outside the validity period of the contract

Some of these situations are unenforceable against the client by operation of law (article L113-2 of the French Insurance Code / Code des assurances). If cover is refused, get support from a specialist lawyer: case law is broadly favourable to the consumer.

In summary

Ten-year liability follows the works, not the firm: even in bankruptcy, it can still be called upon
Find the ten-year certificate (personal file, notaire, seller, Dommage Ouvrage insurer)
If you have Dommage Ouvrage cover, that is the one you turn to first
Otherwise, file a claim by registered letter directly with the firm's ten-year insurer
The 10-year period runs from handover and remains strict

Need support?

A firm in liquidation, a worsening defect, an uncooperative insurer? Our team of brokers points you towards the right steps and helps you make effective use of your cover. Request a personalised quote or get in touch with an adviser.