RIYADH — The Insurance Authority and the General Directorate of Civil Defense announced on Sunday the launch of the Third-Party Cooperative Insurance Policy for Crowded Venues and High-Risk Activities.
The policy provides civil liability coverage for establishments against bodily injury and property damage that may befall visitors and patrons as a result of accidents at covered sites. It is designed to protect the rights of visitors and strengthen establishments’ ability to manage the financial and operational burdens arising from such incidents. The compensation provided under the policy varies depending on the nature of the activity and the level of risk associated with it.
The insurance is set to become mandatory under the relevant Cabinet decision. Accordingly, the policy will become a key requirement for obtaining a General Directorate of Civil Defense license to operate activities subject to mandatory insurance. Coverage will be governed by the terms, conditions, and exclusions set out in the policy, with implementation to take place in several phases.
CEO of the Insurance Authority Naji Al-Tamimi said the policy supports business sustainability and enhances the attractiveness of investment in sectors and activities subject to the insurance requirement.
He said the coverage will help establishments manage risks, mitigate the financial impact of accidents, and strengthen their ability to continue operations and recover from incidents. This, in turn, contributes positively to business stability and service quality while boosting confidence in Saudi Arabia’s investment environment and supporting its growth and expansion in line with the objectives of Saudi Vision 2030.
Source: Saudi Gazette