All building tradesmen must avail themselves of a ten-year guarantee even before being able to carry out work on a site. VRD (Roads and Miscellaneous Networks) works managers are no exception to the rule.
Why is the ten-year VRD insurance compulsory? What works does it cover? How do I compare prices and get quotes? We give you all the information you need to know!
Why is the ten-year VRD road works insurance compulsory?
The debate has long raged between VRD entrepreneurs and the issue of the ten-year insurance obligation. Some thought they could dispense with it, on the grounds that the character of construction was not established.
However, court decisions were often against them, with case law considering that the concept of work was well established in public roads, whether it be the construction of roads such as roads, sidewalks and pavements or implementation of communication and supply networks (water, gas, electricity, etc.).
By ministerial response of August 5, 2008, the Minister of Ecology, Energy, Sustainable Development and Regional Planning ended the debate by recalling articles 1792 and following of the Civil Code, according to which any company intervening for the repair of public roads can be held responsible under the ten-year guarantee for the work it has carried out.
Therefore, VRD road works cannot be started in the absence of a ten-year guarantee if they affect the structural work. Proof of ten-year insurance must be provided in public procurement tenders.
What does the ten-year guarantee for road works and various networks cover?
The ten-year VRD guarantee is essential to protect the sustainability of your activity and protect users. It takes care of heavy damage, making the tracks and networks dangerous because their solidity is compromised, or making them unfit for their use.
Due to the size of the sites, which are often large, but also to the use of many construction machinery for earthworks or asphalt work, VRD companies are particularly exposed to risks.
What is VRD?
The name VRD designates works and structures relating to both urban development works and civil engineering. They help prepare the ground for those involved in the construction industry. As such, their missions are numerous:
- Construction of roads and networks
- Servicing of public and private land
- Connection to energy supply, sanitation, telecommunications, etc. networks.
They must respect many urban planning constraints, and submit to construction standards as well as standards relating to environmental protection.
Examples of damage covered by the ten-year VRD
Like any ten-year guarantee, VRD insurance intervenes in the event of poor workmanship, construction defects or negligence on your part. It repairs major damage such as:
- Subsidence of a road caused by water infiltration
- The collapse of a roadway resulting from a faulty workmanship
- A slippage of the communication routes linked to the unstable nature of the ground
- Significant tar cracks preventing the movement of users
- Destruction of existing pipes during road works
- Damage to communication lines
- Failure to connect to sanitation
The damage can therefore be numerous and above all very costly. It is essential to subscribe to a ten-year guarantee adapted to your road works in order to protect your business from financial risks.
How to get quotes for ten-year VRD insurance?
The rates for the ten-year guarantee vary greatly from one VRD company to another. They take into account the size of your structure, its number of employees, its experience, its loss experience, but also its turnover.
On average, a VRD micro-entrepreneur will pay 1,000 euros a year for his ten-year VRD insurance, while a VRD company with a turnover of 500,000 euros will pay 10,000 euros.
Although expensive, this guarantee is essential for the smooth running of your business, its cost must be integrated systematically into your budget. It is estimated to be equivalent to 2% of your turnover on average.
Fortunately, insurers are in competition, which makes it possible to obtain attractive rates provided you take the time to compare several insurance quotes. We therefore advise you to take the time to reflect before signing a ten-year VRD contract with your usual insurance company.
To find ten-year insurance at the best value for money, the use of an online simulator is relevant. The latter allows you to compare several offers that correspond to your real insurance needs.
Before any subscription, check the warranty exclusions, but also the ceilings and deductibles provided for in the contract. Insure yourself for the necessary by avoiding extraneous options. But do not ignore your activities, all types of work carried out must be declared so as not to engage your personal liability.