Morocco Mandates Insurance for Construction Projects to Reduce Risk

The measure has been in effect since December 30, 2024. While the "All Risks Construction" insurance covers both "Damage to the Work" and "Construction Site Civil Liability," the "Decennial Civil Liability" insurance covers damage related to serious defects that occurred after the acceptance of the works. In the case of the first insurance, the deductible for the "Damage to the Work" guarantee is capped at 7%, a fixed amount limited to 20,000 dirhams or the highest amount between these two options. The minimum guarantee cannot be less than the total cost of the construction work and 500 million dirhams. If several works are covered by the same insurance contract, the compensation cannot exceed 1 billion dirhams, reports Le Matin.

As for the "Construction Site Civil Liability" guarantee, it concerns damage caused to third parties. Here, the deductible cannot exceed 50,000 dirhams for material damage and 1,000 dirhams for bodily injury. Regarding the limits of this guarantee, they vary according to the scale of the work: 50% of the amount of the construction work, with a minimum of 4 million dirhams and a maximum of 40 million dirhams for material damage, and 4 million dirhams for bodily injury. The "All Risks Construction" insurance does not cover intentionally caused damage, losses due to non-compliance with technical recommendations, damage caused outside the construction site perimeter, delays in deadlines, damage caused to buildings already delivered, or losses related to cybercrime.

For the "Decennial Civil Liability" insurance, the guarantees cannot be less than the minimum amount between the cost of the work and 500 million dirhams. Regarding contracts covering several works, the compensation ceiling is 1 billion dirhams. The deductible for damages is also either capped at 7%, or in the form of a fixed amount, limited to 50,000 dirhams for works under 500 million dirhams, and 100,000 dirhams for projects costing equal to or greater than this amount. This insurance excludes losses caused intentionally, disasters due to natural disasters, damage related to nuclear reactions or due to mining operations, as well as damage caused by misuse of the building.