08 February 2024
The Insurance Authority has issued a decision to adopt the standard
format for the insurance document of professional liability for entities
inspecting works according to the Saudi Building Code.
This came in coordination and cooperation with the Saudi Standards,
Metrology, and Quality Organization. This decision stemmed from the role of the
Insurance Authority in supporting the effectiveness of the insurance sector and
enhancing its role in protecting against the risks of professional liability
for entities inspecting works according to the Saudi Building Code.
It involved adopting new insurance product document formats that serve
various sectors and ensure the provision of protection against expected risks,
safeguarding the rights of document holders, beneficiaries, and all parties
involved in the contractual relationship. The standard format established the
minimum coverage and exceptions of professional liability insurance for
entities inspecting works according to the Saudi Building Code, which couldn't
be reduced by agreement.
It also defined the commencement and termination of coverage, as well as
cases where retroactive coverage applies. The standard format allows the
insured party the option to extend the claims notification period as an
additional benefit, which the company is obligated to offer to him.
It should be noted that the issuance of the standard format for the
insurance document of professional liability for entities inspecting works
according to the Saudi Building Code has a positive impact on building code
inspectors by providing the necessary insurance protection and activating the
role of insurance in protecting against expected risks during their work.
It also coordinated with stakeholders in various sectors and provides
regulations that safeguard the rights of everyone involved.