Mandatory Civil Liability Insurance Is Now in Effect for Crowded Places & High-Risk Activities in Saudi Arabia

On 16 August 2026, the Insurance Authority (IA), in cooperation with the General Directorate of Civil Defense, officially announced that the Third-Party Cooperative Insurance Policy for Crowded Places and High-Risk Activities is now mandatory. The IA had earlier issued the standard insurance policy wording in July 2024, which took effect on 1 August 2024.

What does it cover?

The policy covers an establishment’s civil liability for bodily injuries and property damage sustained by visitors and patrons as a result of accidents occurring within covered premises. The standard policy prescribed by the IA sets out minimum coverage limits, as well as detailed provisions on policy conditions and exclusions. Notable exclusions include natural disasters, cyberattacks, professional liability, and war and warlike operations.

The IA has confirmed that licensed insurers currently approved to distribute the product include ACIG, Motakamelah, Medgulf, Liva, Al Rajhi, Arabian Shield, GIG, Malath, Wataniya, Chubb, Tawuniya and Al Etihad.

Who is affected?

The insurance is mandatory for establishments holding a Civil Defense license for activities classified as crowded places / populated areas or high-risk. The IA has indicated that the mandatory requirement will be implemented in several phases, covering, among others, a number of economic, commercial, entertainment, and healthcare activities. Examples of activities currently subject to the mandate include chemical warehouses, used oil storage, hazardous medical waste storage, wholesale of all types of wood, general warehouses storing a variety of goods, tire warehouses, paint manufacturing, and industrial detergent manufacturing. The policy will become a key requirement for obtaining a Civil Defense license to conduct activities subject to mandatory insurance.

How we can assist

Our team can support establishments in navigating this new mandatory requirement. We can advise on whether the requirement applies to your specific establishment given your licensed activities and risk classification, review the insurance policy documents for regulatory compliance and red flag issues, and help you stay ahead of new requirements as the IA implements additional phases. If your establishment falls under any of the covered activity categories or if you are unsure whether it does, please contact Anand Singh, Legal Director at a.singh@tamimi.com and Di Melody Huang, Associate at d.huang@tamimi.com.