The Peeters II law entered into force on 1 July 2019 and was published on 9 may 2019.
The law entails 2 important elements:
- Every architect, chartered surveyor, safety and health coordinator or other service provider who performs intellectual services is obliged to take out a professional liability insurance policy.
Those who perform primarily material works fall outside the scope of this obligation, as do internal engineering offices and building promoters.
The insurance policy must be concluded for every type of real property and covers the liability for professional faults in the performance of intangible services relating to construction and renovation.
- Amendments to the law of 31 May 2017 regarding the mandatory insurance of ten-year civil liability in the construction sector BA 10 (Peeters I Act from 1 July 2018).
This law includes mandatory insurance for contractors, architects and other service providers in the construction industry if they carry out work or provide services to the closed shell of a residence.
The Peeters I law placed a number of restrictions on the insurance obligation:
- It is only applicable to players from intellectual professions who perform services relating to the closed rough structure.
- The insurance obligation is limited, with respect to both personnel and materials, to the closed rough structure.
- The focus is on the closed rough structure’s solidity, stability and water tightness (when the latter endangers the solidity or stability of the house).
The Peeters I law did not give any definition of exactly what ´closed rough structure´ entailed. The Peeters II law describes that key concept as follows:
“Closed rough structure: the elements that contribute to the stability or the strength of the structure (foundations and supporting structure) as well as the elements that ensure the structure’s wind- and water tightness.” (exterior joinery and roof = closing the structural work)
It is clear now that the compulsory insurance applies for those who erect the rough structure, not those who do finishing works on it.
The Peeters II law entered into force on 1 July 2019 and is being applied with retroactive effect, so if you are uncertain about whether you are obliged to take out such insurance, don´t hesitate to contact us for personalised advice.
