Saudi Arabia launches mandatory insurance for crowded venues, high-risk activities

The Insurance Authority and Civil Defense in Saudi Arabia have introduced a new mandatory third-party insurance requirement for crowded venues and high-risk activities. This policy aims to provide civil liability coverage for establishments against bodily injury and property damage that may occur during incidents at these locations.

The measure intends to protect the rights of visitors and patrons while helping businesses manage the financial and operational consequences of such incidents. The compensation offered by the insurance policy varies based on the specific activity and its associated risk level.

The Insurance Authority and the Civil Defense Directorate announced the launch of this mandatory requirement through a statement on the Insurance Authority's X account. It has become a crucial prerequisite for obtaining a license to operate activities subject to this insurance from the General Directorate of Civil Defense. Engineer Naji Al-Faisal Al-Tamimi, CEO of the Insurance Authority, highlighted that this insurance will support business sustainability and improve the investment appeal of sectors and activities covered by the policy.

It offers financial protection that helps establishments manage risks, minimize the financial impact of incidents, and strengthen their ability to recover, which positively impacts business stability and service quality.

Al-Tamimi emphasized that the Insurance Authority encourages owners of establishments, crowded venues, and high-risk activities to obtain this policy from licensed insurance companies. He urged them to thoroughly review all policy details and provisions available on the Insurance Authority's website.