Contractor All Risk (CAR) insurance policy (compulsory):
Pursuant to Article 105* (paragraph 1) of the new ACR 600-2024, the risks covered under an All Risks Contractors’ Insurance policy (as approved by insurance companies in Libya) are divided into two main categories covering property damage and legal liability:
Section I: Property Damage
This section covers sudden and unforeseen losses or damage to insured property (project works, materials, and equipment) at the job site:
- Force Majeure Risks: Acts of God that are difficult to control (such as storms, floods, and earthquakes).
- Ordinary Risks: Incidents resulting from errors or operational conditions, such as fire, theft, and burglary.
- Accidental Human Risks: Unintentional negligence, misuse, or accidents resulting from inexperience during execution.
Section II: Third-Party Liability
This section covers financial compensation that the contractor is legally obligated to pay as a direct result of incidental damages caused by the project to third parties:
- Bodily injury: Death or accidental injury sustained by individuals who are not employed on the project.
- Property Damage: Accidental damage to or loss of third-party property and assets resulting from the contractor’s work.
Note: Depending on the nature and scope of the project, the project owner may require additional insurance policies in addition to the CAR policy; for example, a General Liability insurance policy.
(*) Download link: https://drive.google.com/drive/folders/1_VsRnlCqN5cOcPZVbOKZY-lnlVueBBcC?usp=drive_link
Workplace injury insurance for workers with work/residency permit (compulsory):
Monthly premiums are paid to the Social Security Fund (SSF), a Libyan government agency; therefore, under current laws, the SSF is responsible for medical treatment and compensation costs arising from workplace accidents.
As of 2022, the Libyan government requires foreign workers to obtain an Accident Insurance Policy from a private insurer to secure their work and residence permits. Consequently, the Social Security Fund (SSF) is effectively exempt from this liability, and all workplace accident expenses and compensations are covered by private insurance companies. Nevertheless, the SSF continues to collect monthly insurance premiums covering workplace accidents.
Due to an agreement reached by the Libyan Ministry of Labor, the insurance policy in question can only be obtained from the “International Insurance Company”.
Motor Vehicle insurance policy (compulsory):
Pursuant to Law No. 28 of 1971, all vehicles traveling on public roads are required to have third-party liability insurance. This mandatory insurance covers legal liabilities arising from traffic accidents to protect pedestrians and passengers.
Comprehensive (Private) Motor Vehicle insurance policy (optional):
Damage and Accidents: Covers the cost of repairs to your vehicle following an accident.
Theft and Fire: Provides coverage for property damage in the event your vehicle is stolen or suffers fire damage.
Third Party: Covers injuries, death, or property damage to other people.
Contractor's Plant & Machinery (CPM) insurance policy (optional):
This policy covers heavy construction equipment against damage resulting from accidents that may occur while the equipment is idle, in operation, or undergoing maintenance, as well as against theft and natural disasters. Local insurance companies offer this coverage to protect machinery such as bulldozers, cranes, loaders, and the like from force majeure events and construction site hazards.
Goods-In-Transit insurance policy (optional):
A road freight insurance policy in Libya is a policy that protects your goods and shipments against risks associated with transportation (such as accidents, overturning, or fire). The insurance coverage is valid from the point of loading to the final destination.
Personal Injury insurance policy for short-visit to Libya (optional):
Private insurance companies offer personal accident insurance policies that are valid for the duration of the visitor’s short stay in Libya.
Please ensure you only deal with licensed insurance companies that are members of the Libyan Insurance Federation. A complete list of these authorized companies can be found in the link below: