The Government has issued Decree No. 220/2026/ND-CP, amending and supplementing a number of regulations on compulsory insurance in construction investment activities. The new regulations aim to improve the efficiency of risk management while ensuring the rights and interests of relevant parties in the event of incidents during construction.
Table of Contents
Three Groups of Construction Works Subject to Compulsory Insurance
Under Decree No. 220/2026/ND-CP, project owners (investors) are responsible for purchasing insurance for construction works during the construction period if the works fall into one of the following groups:
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Works with significant impact on public safety and community interests These are construction works identified by construction law as having a substantial impact on public safety and community interests, and therefore must be covered by compulsory insurance throughout the construction process.
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Works with high risk of adverse environmental impacts Projects with a high potential to negatively affect the environment under the provisions of environmental protection law are also required to purchase compulsory insurance.
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Large-scale works or works with complex technical requirements Projects with large investment scales or those applying complex technical solutions must participate in insurance to mitigate risks arising during the construction process.
Regulations on Minimum Sum Insured
The Decree also adjusts regulations regarding the insurance liability limits for construction works under construction.
Accordingly, the minimum sum insured must fully reflect the total value of the work upon completion. This value includes construction costs, materials, equipment installation, labor, transportation, taxes, fees, and other lawful costs invested in the work by the project owner.
In particular, the insurance limit must not be lower than the total value of the construction contract, including any adjusted or supplemented contract value (if any).
This regulation is designed to ensure that the insurance value matches the actual scale of the project, restricting under-insurance practices that could undermine compensation capacity when risks occur.
What Should Project Owners Note?
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The sum insured must be clearly specified in the insurance contract signed with the insurance enterprise.
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In case the value of the construction work changes and affects the minimum sum insured, the policyholder is responsible for notifying the insurance enterprise within 05 working days from the date of the work value adjustment, or within another timeline if agreed upon by the parties in the contract.
Significance of the New Regulation
The amendments to the regulations on compulsory insurance in construction investment activities contribute to enhancing safety for high-risk projects, while safeguarding the rights of project owners, contractors, and related parties in the event of an incident during construction.
References: Government Decree No. 220/2026/ND-CP; relevant policy analysis documents.