Since January 2025, liability insurance has not been a matter of choice for construction contractors but a legal requirement: under Section 21/B of Government Decree 191/2009 (IX. 15.), a contractor must take out a liability insurance contract covering damage caused in the course of the construction work it undertakes. The Hungarian Chamber of Commerce and Industry (MKIK) began its checks in spring 2025, and according to chamber notices many contractors either had not taken out a contract, or had taken one out but had not uploaded the proof. This article summarises who the obligation applies to, what the minimum is, and what happens if the insurance is missing.
- The obligation applies to business entities and sole traders that carry out construction work on a commercial basis, from 15 January 2025.
- The minimum sum insured depends on construction revenue: five bands, from HUF 20 million to HUF 200 million per loss event, with double that amount per year.
- The MKIK (Hungarian Chamber of Commerce and Industry) checks that the insurance is in place at registration and at least once a year; if it is missing, it prohibits the activity for up to six months and then removes the contractor from the register.
Who does it apply to, and what must it cover?
The decree covers construction work carried out as a commercial business activity: according to chamber notices, the activities concerned are those under TEÁOR'25 codes 41.00–43.99 (except 43.60) for business entities, and ÖVTJ'25 codes 410001–439906 (except 436001) for sole traders (TEÁOR and ÖVTJ are the Hungarian activity classifications) – regardless of whether it is a main or a secondary activity. A suspended sole proprietorship does not need a contract while the suspension lasts, but the proof must be uploaded before the registration can be reactivated. Under the decree, the cover must extend to personal injury and property damage caused by breaching the professional rules of construction work and contractual obligations, and to the related restitution for violation of personality rights (sérelemdíj) – including damage arising from the activities of employees, persons in other work-related legal relationships and subcontractors for which the insured contractor is liable. The obligation does not extend to public investments falling under the Act on the rules of state construction investments. The article on the logic of compulsory cases shows more generally how this rule fits in among the other requirements.
The minimums: five revenue bands
Section 21/D of the decree links the minimum sum insured to annual net revenue from construction work (net income for sole traders): for revenue of up to HUF 100 million, HUF 20 million per loss event and HUF 40 million per year; between HUF 100 and 500 million, HUF 50 and 100 million; between HUF 500 million and 2 billion, HUF 100 and 200 million; between HUF 2 and 10 billion, HUF 150 and 300 million; above HUF 10 billion, HUF 200 and 400 million. For a project-based, fixed-term contract, the same amounts apply to the entire duration of the project. Important: these are statutory floors, not sizing advice. A chain of water leaks in a block of flats or a personal injury can easily exceed the lowest band, so it is worth thinking through separately the difference between the minimum limit and the real risk. When moving to a different band – if revenue grows significantly – the chamber expects new data and new proof.
Proof and upload: where most contractors get stuck
Registration requires a certificate of cover from the insurer that is no more than 30 days old, and according to chamber notices the document of the concluded contract (policy or certificate of cover) must be uploaded to the MKIK contractor register within a short deadline after conclusion – 8 days when the scheme started. At the renewal date there is nothing to do if the contract is for an indefinite term and neither the insurer, the revenue band nor the contract terms have changed; data must, however, be submitted if a fixed-term contract expires, if you switch insurer, if you move to another band, or if the contract ends for any reason – the insurer itself also notifies the MKIK of the termination. The decree also allows someone else – for example the main contractor – to take out the contract for the contractor's benefit; in that case the contractor must be named as an insured, and must upload the document itself. The steps for obtaining the certificate of cover are described in a separate article in the knowledge base. As a broker, I coordinate the issuing and the content of the certificate with the insurer; uploading it to the chamber portal, however, is the contractor's own, non-transferable task.
What does the chamber check, and what are the consequences?
The MKIK checks that the insurance is in place at registration and at least once a year thereafter, and whether the cover meets the statutory minimum for the declared revenue. If the contract is missing or does not comply, under Section 37(1)(c) of the decree the chamber prohibits the continuation of the construction activity until the contract is concluded, but for no more than six months; if the contractor does not remedy the situation within this time either, the chamber removes it from the register and revokes its registration number. The prohibition decision arrives via Cégkapu or Ügyfélkapu (the official electronic mailboxes for companies and individuals), and once the gap has been remedied, the entitlement can be reactivated. The lesson of the 2025 wave of checks was that a contract that has been concluded but not uploaded counts as missing in the chamber's eyes. The article on chamber requirements gives a picture of how chambers approach this in general.
Subcontractor, main contractor, the chain
The law expects the main contractor's cover to extend to damage caused by subcontractors for which the main contractor is liable – but this does not make the subcontractor's own contract unnecessary, as the obligation also applies to the subcontractor if it carries out construction work on a commercial basis. According to the chamber FAQ, the main contractor's contract is accepted as the subcontractor's proof if the subcontractor is named on it as an insured and uploads the document itself. Further questions about the chain are covered in the article on liability along the construction chain.
What should you do now?
If you carry out construction work and do not yet have a contract: request a quote based on your actual list of activities and your construction revenue, then upload the policy to the chamber register. If you have a contract from before 2025: check whether the insured activity, the subcontractor extension and the limits reach the minimum for your band – an old “contractor's liability insurance” does not automatically comply. If you have received a prohibition decision: the six months are for concluding the contract and uploading it, not for waiting. If you let me know, I prepare the comparison of quotes and coordinate the content of the certificate of cover, and if you tell me that you have moved to another band or would like to change insurer, I request the amendment and the new certificate from the insurer and prepare the coordination; the revenue declaration, the signature and the upload to the chamber remain with you.
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Sources
- Government Decree 191/2009 (IX. 15.), Sections 21/B–21/G and 37 (njt.hu)
- MKIK (Hungarian Chamber of Commerce and Industry) – On compulsory contractor liability insurance
- MKIK – Construction contractor businesses: frequently asked questions
- Építési jog – Everything there is to know about compulsory liability insurance for contractors (updated 31.03.2025)
- Sopron Chamber of Commerce and Industry – Contractor liability insurance FAQ 2.0
- Csongrád-Csanád County Chamber of Commerce and Industry – Compulsory contractor liability insurance
