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

The Insurance Authority and the General Directorate of Civil Defense have announced the launch of mandatory third-party cooperative insurance for crowded venues and high-risk activities.

According to a statement from the Authority on its X platform account, the policy aims to cover civil liability for establishments against bodily injury and property damage that may affect visitors and patrons as a result of incidents occurring within the covered sites. This measure is intended to protect their rights and enhance the ability of these establishments to manage the financial and operational burdens resulting from such incidents. Compensation provided by the policy will vary depending on the nature of the activity and its associated risk level.

This insurance will be implemented as a mandatory requirement under a Cabinet decision, making the policy one of the essential prerequisites for obtaining a license from the General Directorate of Civil Defense to operate activities subject to this insurance.

Engineer Naji Al-Faisal Al-Tamimi, CEO of the Insurance Authority, stated that this insurance will support business sustainability and enhance the investment appeal of sectors and activities subject to the requirement. It provides coverage that helps establishments manage risks, reduce the financial impact of incidents, and strengthen their ability to continue and recover, which positively reflects on business stability and service quality. It also boosts confidence in the Kingdom’s investment environment and supports its growth and expansion, in line with the goals of Saudi Vision 2030.

Al-Tamimi added that the Insurance Authority urges owners of establishments, crowded venues, and high-risk activities to obtain this policy from licensed insurance companies and to review all its details and provisions on the Authority’s website.

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