The insurance for Construction Liability is intended to protect the interests of Third Parties living on or around, passing by, or crossing over a construction site.
All physical or legal persons acting as contractors or sub-contractors shall bear liability for accidental bodily injury, death or property damage to third Parties caused by the construction operation.

Unless exempted below, every contractor or sub-constructor engaged in construction activity, including the rehabilitation of existing construction, must purchase construction liability insurance.
The following construction activities are exempted from the compulsory insurance requirement:

Upon the authorization of a private construction project, the Ministry of Land Management Urban Planning and Construction or the Provincial-Municipal Department of Land Management Urban Planning and construction and Cadastre shall advise the project owner to deal with a contractor or sub-contractor that has the required construction liability insurance. The construction site shall be not allowed to open until the required insurance is in place.

For projects that are not exempted by compulsory insurance as stated in item 2 and funded by the government budget or loans, the successful bidder must submit, together with the bidding documents, the insurance cover note issued by an insurance company authorized to write construction insurance in the kingdom of Cambodia confirming that the required insurance is in place.
If the bidder fails to obtain the required insurance, construction may not begin.
The cover shall be replaced by the insurance policy when the construction site is opened.
The Ministry of Economy and Finance shall not release any fund unless evidence of insurance is attached to the payment voucher for the construction project.

On applying for construction, owner shall show insurance policy of insurance company which has license in the Kingdom of Cambodia. Any application without cover not or insurance policy will be rejected by the Ministry of Land Management Urban Planning and Construction and the Province – Municipal Land Management Urban Planning and Construction.

Whenever any construction work is in progress, the Ministry of Land Management Urban Planning and Construction and the Province-Municipal Department of Land Management Urban Planning and Construction and Cadastre and any local competent authorities shall have the duty to inspect the construction site and demand evidence that the required insurance is in effect. Unless the construction project is exempt from the compulsory insurance requirements, the authority shall temporarily suspend the construction work if evidence of the required insurance cannot be shown and the contractor or sub-contractor shall be required insurance. The failure to provide such evidence shall be fined as provided in Article 52 of the Insurance Law.

Whenever any required construction liability insurance is cancelled by the insurer for non-payment, the insurer shall provide notice of such cancellation to the Ministry of Land Management Urban Planning and Construction and the Province-Municipal Department of Land Management Urban Planning and Construction and Cadastre and any local competent authorities

If a construction site accident is caused by an insured motor vehicle, the motor vehicle insurance shall be the primary insurance covering the accident and the construction liability insurance shall be secondary.

Any regulation contradicting this inter-ministerial Prakas shall be deemed null and void to the extent of such contradiction.

All concerned authorities or organizations relating to these three ministries shall respectively and effectively implement this Prakas from the date of its signature.