The Insurance and Social Welfare Supervisory Authority (ACAPS) and the Moroccan Insurance Federation (FMA) announced the entry into force of the compulsory 'workshop risk' and 'decennial liability' insurances, starting 30 December 2024.
The ACAPS said in a statement that both insurance covers have become mandatory following the publication of two ministerial decisions in the Official Gazette, noting that the former is related to insurances related to construction, while the second specifies the typical general conditions applicable to compulsory decennial liability insurance contracts.
The new mandatory covers aim to enhance protection for parties involved in construction projects and promote compliance and adherence with regulatory decision.
The ACAPS has stated that the enforcement of these insurance covers should provide protection to both the entrepreneur and to all professionals involved in the project until the handover of the works. For the workshop risk (or contractors risk), it is mandatory for the project owner along the duration of the construction works. It includes two main guarantees: the first is the damage guarantee, which covers material damage to the building, materials or equipment used in the workshops, and the second is the civil liability guarantee, which covers the financial consequences of damage to third parties during the works.
For the decennial insurance is mandatory for professionals in charge of construction, especially architects, engineers and contractors. It covers damages that affect the durability of the building, such as collapses due to building defects, the use of unfit materials, or soil problems.
Both covers address buildings for industrial, commercial, hotel, sports and residential buildings, as well as residential buildings which are higher than three floors or expanding across an area exceeding 800 square meters.
The ACAPS and the FMA announced that they will work to ensure the implementation of those compulsory schemes to guarantee optimal protection for the insured and the beneficiaries of the contracts.