Saudi Arabia launches third-party insurance policy for crowded venues, high-risk activities

The Insurance Authority and the General Directorate of Civil Defense have announced the launch of a Third-Party Cooperative Insurance Policy for crowded venues and high-risk activities in Riyadh. The policy offers civil liability coverage to establishments against potential bodily injury and property damage to visitors resulting from accidents at covered sites. This policy aims to protect visitors' rights and bolster establishments' capacity to manage financial and operational challenges arising from such incidents.

The compensation under the policy differs based on the activity's nature and the associated risk level. The insurance is expected to become mandatory, as per a Cabinet decision, making it a crucial requirement for obtaining a General Directorate of Civil Defense license to operate such activities. The coverage will be regulated by the policy's terms, conditions, and exclusions, with implementation occurring in multiple stages.

Naji Al-Tamimi, the CEO of the Insurance Authority, stated that the policy supports business sustainability and boosts the appeal of investment in sectors and activities subject to the insurance mandate. He added that the coverage will assist establishments in managing risks, minimizing the financial impact of accidents, and enhancing their capacity to operate and recover from incidents.

This, in turn, positively impacts business stability, service quality, and confidence in Saudi Arabia's investment environment, contributing to the nation's growth and expansion under the auspices of Saudi Vision 2030.