16 August 2026
The Insurance Authority, in cooperation with the General Directorate of Civil Defense, has announced the launch of the Third-Party Cooperative Insurance Policy for Crowded Places and High-Risk Activities. The policy aims to cover establishments' civil liability for bodily and property damage sustained by visitors and patrons as a result of accidents occurring within covered premises. It protects their rights and strengthens establishments' ability to manage the financial and operational burdens resulting from such incidents. Compensation under the policy varies according to the nature of the activity and its associated level of risk.
The insurance will be mandatory pursuant to Council of Ministers Resolution No. (103). Accordingly, the policy will become a key requirement for obtaining a General Directorate of Civil Defense license to conduct activities subject to mandatory insurance. Coverage is subject to the terms, conditions, and exclusions set out in the policy. The insurance will be implemented in several phases, covering, among others, a number of economic, commercial, entertainment, and healthcare activities.
His Excellency the CEO of the Insurance Authority, Eng. Naji Al Faisal Al Tamimi, stated that the insurance supports business sustainability and enhances investment attractiveness in sectors and activities subject to mandatory insurance by providing coverage that helps establishments manage risks, mitigate the financial impact of accidents, and strengthen their ability to continue operations and recover from such incidents. This contributes positively to business stability and service quality, strengthens confidence in the Kingdom's investment environment, and supports its growth and expansion in line with the objectives of Saudi Vision 2030.
Al Tamimi emphasized that the Insurance Authority urges owners of establishments, crowded places, and high-risk activities to obtain the policy from licensed insurance companies and review its full details and terms through the Authority's website: www.ia.gov.sa.