While the Morocco is actively preparing for the 2030 World Cup with large-scale infrastructure projects, the authorities of the insurance sector come online by establishing the obligation of assurances construction. This measure aims to supervise current and future construction sites, while guaranteeing better management of risks linked to construction work and optimal coverage in the event of a disaster.
“All Risks Construction Site” insurance: double protection
Insurance “All Construction Site Risks” offers double protection, covering both “Damage to the work” and the “Construction site liability”. For the “Damage to the work” guarantee, a deductible applies according to three methods: a percentage of the damage, capped at 7%, a fixed amount limited to 20,000 dirhams or the highest amount between these two options. Furthermore, the minimum guarantee cannot be lower than the lower of the total cost of the construction work and 500 million dirhams. In cases where several works are covered by the same contract, the overall compensation ceiling is set at 1 billion dirhams.
The “construction site liability” guarantee covers damage caused to third parties. There franchise is capped at 50,000 dirhams for material damage and 1,000 dirhams for bodily injury. Concerning the limits of this guarantee, they vary depending on the scale of the work: 50% of the amount of the construction work, with a maximum of 40 million dirhams and a minimum of 4 million dirhams for material damage, and 4 million dirhams for bodily injury.
For insurance “All Construction Site Risks”several exclusions are provided. Damage caused intentionally, losses due to non-compliance with technical recommendations, or damage caused outside the site perimeter are not covered. In addition, delays in deadlines, damage to buildings already in use or delivered, as well as losses linked to cybercrime are among the exclusions.
-“Ten-year Civil Liability” insurance: protection against serious defects
As for insurance “Ten-year Civil Liability”it is designed to cover damage linked to serious defects occurring after receipt of the works. The guarantees, per work and per insurance period, cannot be less than the lowest amount between the cost of work and 500 million dirhams. For contracts covering several works, an overall compensation ceiling is also set at 1 billion dirhams.
A deductible may also apply to this ten-year guarantee. It is determined either as a percentage of the damage, with a ceiling of 7%, or in the form of a lump sum amount. This amount is limited to 50,000 dirhams if the work costs less than 500 million dirhams, and to 100,000 dirhams for projects costing equal to or greater than this threshold. As for insurance TRCthe amount retained will correspond to the highest ceiling between these two options.
Thus, for this insurance, the exclusions include losses caused intentionally, losses due to natural disasters, damage linked to nuclear reactions or ground movements induced by mining operations, as well as damage resulting from misuse of the work.
