Introduction of compulsory construction insurance

A bill establishing a compulsory insurance for certain construction operations has been submitted to the Moroccan authorities. Due to the increasing complexity of the works and the parallel increase in the risks sustained, companies are oftentimes unable to come up with the resources required to deal with significant claims.

In this respect, the obligation to purchase “contractor’s all-risks", "damage to work" and "third party liability" coverage is part of the proposed amendment of the insurance Code. But exonerating local authori-ties and the State of this obligation is likely to limit its scope.
On the other hand, the lack of technical controls may discourage insurers.