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Decennial Liability: Essential Knowledge Unpacked

To buy, renew, reword midterm, or trigger decennial liability insurance: contact us. We contractually guarantee lowest cost within the global insurance marketplace for tailored coverage that we structure independently of any insurance broker or lobbyist. DeshCap is ranked #1 for Liability Risk worldwide and Top Operational Risk Advisor.

What is Decennial Liability

Decennial liability is a type of liability insurance that is required in some countries for construction projects. It covers damages or defects that occur within the first 10 years after the completion of a construction project and that result in the partial or total collapse of the project. It is also known as inherent defects insurance.


Decennial liability insurance typically covers the cost of repairing or rebuilding the project, as well as any legal costs associated with defending against claims. It may also cover the cost of temporary accommodations for occupants of the project while repairs are being made.


Decennial liability insurance generally excludes damages or defects that are caused by normal wear and tear, as well as those that result from the actions of third parties. It also typically excludes damages or defects that are the result of faulty maintenance or repairs.

Cost/Benefit of Decennial Liability Insurance

It would be recommended that construction companies consider purchasing decennial liability insurance if they are required to do so by law or if they are working on a large or complex project. This type of insurance can provide valuable financial protection in the event that damages or defects occur within the first 10 years after the completion of the project. It is important for construction companies to carefully review the terms and conditions of decennial liability insurance and ensure that it meets their needs and those of the project.

Cost of Decennial Liability Insurance

The cost of decennial liability insurance can vary widely depending on a number of factors, including the size and complexity of the construction project, the location of the project, and the insurer's underwriting criteria.

In general, decennial liability insurance is priced as a percentage of the total construction cost of the project. The exact percentage will depend on the specific risks associated with the project, as well as the financial stability and claims history of the construction company.

Other factors that can affect the cost of decennial liability insurance include the type of construction materials used, the level of quality control measures in place, and the level of risk that the insurer is willing to assume.

It is important for construction companies to carefully consider their insurance needs and shop around to find the most affordable coverage. It may be helpful to obtain quotes from multiple insurance brokers and companies in order to compare prices and coverage options.

Source: ChatGPT Dec 15 Version. This content was reviewed by our team and may have been edited to produce a higher level of accuracy to readers.

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