In compliance with Art. 129 of Italy’s Legislative Decree 50/2016, the executor of work(Contractor) is required to underwrite an insurance policy to indemnify all contracting parties from execution risks of whatever cause, with the exception of those deriving from project design errors, insufficient project design, third party actions or force-majeure, with the policy covering also civil liability for damages to third parties in the execution of work, until the date of issue of the Provisional Acceptance Certificate or the Execution Compliance Certificate.

Art. 129: Warranties and insurance coverage for public works

(Art. 30, Para 3, 4, 7-bis; Law No. 109/1994)

1. In addition to the requirements of Art. 75 and Art. 113, the executor of work is also obliged to underwrite an insurance policy to indemnify the contracting party from all execution risks, notwithstanding their cause, with the exception of those deriving from project design errors, insufficient project design, third-party actions or force-majeure, whereby the policy covers also civil liability warranty for damages caused to third parties during the execution of work until the date of issue of the Provisional Acceptance Certificate or the Execution Compliance Certificate.
2. For works which cost is higher than the amount established by the decree of the Ministry of Infrastructures, the executor is also obliged to underwrite -effective from the date of issue of the Provisional Acceptance Certificate or the Execution Compliance Certificate- a ten-year indemnity policy, and a third party civil liability policy of the same duration, to cover against risks of total or partial destruction of the works, and risks deriving from significant construction defects.
3. This regulation introduces, in the case of public works with a cost higher than 100 million euros, a system of comprehensive warranty for the execution of public works for contracts carried out by the parties defined in Art. 32, Section 1, Para a), b), and c). Once the system is introduced, it will become compulsory for all tenders that include an executive project work, and public works of a value higher than 75 million Euros (Section modified by Art. 2, Section 1, Para f, of Italy’s Legislative Decree 152/2008).