Insurance for establishments open to the public

Insurance for establishments open to the public

More and more structures of all types are opening their doors to the public. These include, among others, hotels, medical, sports, education, training, and entertainment facilities.
These structures are presumed responsible for any material, bodily and even moral damage that a person may suffer once inside. A responsibility whose financial consequences can be very considerable.
This is why the law obliges any natural or legal person operating a work, room or place that must receive the public, to insure themselves for their civil liability vis-à-vis users and third parties.

    Legislative and / or regulatory references related to the insurance obligation.
    Who are the people subject to compulsory insurance?
    What does the insurance obligation relate to?
    What are the penalties for lack of insurance?
    Some examples of the legislative and regulatory provisions of this sector which deal with this compulsory insurance?

1. Legislative and / or regulatory references related to the insurance obligation.

Ordinance 95/07 relating to insurance (amended and supplemented):

Art. 164. Any natural or legal person who operates a work, hall or place intended to receive the public and / or whose operation relates to commercial, cultural or sporting activities, is required to insure for his civil liability vis-à-vis users and third parties.
The conditions and modalities of application of this article are fixed by regulation.

Executive Decree No. 95-411 of December 9, 1995 on the obligation of civil liability insurance for natural or legal persons operating structures open to the public:

Art. 2. The operators of works, rooms or places to receive the public are required to take out the aforementioned insurance, when the number of people who can be accommodated there at the same time exceeds the number of fifty (50) or when the operation extends over a developed area exceeding one hundred and fifty (150) square meters.
Art. 3. Without prejudice to the special provisions provided for by the regulations in force, the insurance cover must guarantee the financial consequences of:

    Civil liability provided for in Articles 124 to 138 of the Civil Code, for bodily, material and moral damage caused to third parties;
    Contractual responsibility towards users.

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2. Who are the people subject to compulsory insurance?

Is subject to this obligation, any natural or legal person who operates a work, room or place to receive the public, for commercial, cultural or sporting activities.
This legal obligation is conditioned by one of the following two criteria:

    The number of people who can be accommodated there at the same time exceeds fifty (50);
    The farm extends over a developed area exceeding one hundred and fifty square meters (150m²).

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3. What does the insurance obligation relate to?

This insurance obligation covers the coverage of the pecuniary consequences of:

    Civil liability provided for in Articles 124 to 138 of the Civil Code, for bodily, material and moral damage caused to third parties;
    Contractual responsibility towards users. [1]

Thus, the guarantee taken out in accordance with this obligation must be sufficient to cover both bodily injury, material damage and moral damage that users and third parties may suffer inside these places.
In addition, the insurance contract must not provide for any forfeiture enforceable against the victims or their beneficiaries. [2]

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4. What are the penalties for lack of insurance?

Failure to comply with this insurance obligation is penalized, in accordance with the provisions of article 184 of ordinance 95/07 relating to insurance, with a fine, the amount of which varies between 5,000 DA and 100,000 DA.
Payment of this fine does not exempt the taxable person from the obligation to take out this insurance.

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5. Examples of the legislative and regulatory provisions of the sector dealing with this insurance.

In the hotel industry

Law No. 99-01 of January 6, 1999 establishing the rules relating to the hotel industry.

Art. 53. Hotel establishments are required to take out insurance covering all risks related to the activity and operation of the hotel.