Construction Insurance: Exceeding the maximum covered amount may result in no coverage!
Published on :
06/08/2026
06
August
Aug
08
2026
In a ruling dated July 2, 2026, the Third Civil Chamber of the Court of Cassation reminded construction professionals of the importance of reviewing the exact limits and conditions of their insurance policy before accepting a project.
In this case, a project manager had been involved in the landscaping of an integrated development zone (ZAC). Following defects affecting the work, the project manager was held liable and ordered to compensate the project owner.
The professional then sought coverage from his insurer. However, his policy limited coverage to construction projects whose total cost did not exceed 15 million euros, unless the insurer had specifically granted coverage beyond that threshold. Yet the total cost of the project, however, far exceeded the limit set out in the policy.
The project manager argued that only the value of the work corresponding to his own scope of services should be taken into account. The Court of Cassation rejected this argument: the threshold set forth in the contract had to be assessed by reference to the total cost of the construction project and not solely based on the value of the works entrusted to the insured.
Since the contractual cost threshold had been exceeded without any additional coverage having been obtained, the professional was therefore not entitled to any reimbursement. The Court of Cassation clarified that this was not a case of a project being underinsured, but rather one that, because its cost exceeded the contractual threshold, fell outside the scope of the insurance coverage provided under the policy.
This decision serves as a crucial reminder: before accepting work on a large-scale project, construction professionals should verify the maximum project covered by their insurance policy, as well as the conditions that must be met to obtain an extended coverage.
Source: 2 juillet 2026, Cour de cassation, Pourvoi n°24-12.598
History
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