New Mandatory Insurance for Crowded, High-Risk Venues

A new mandatory third-party cooperative insurance policy for crowded venues and high-risk activities has been formally launched in 2026 by the Insurance Authority in coordination with the General Directorate of Civil Defense, aiming to strengthen safety requirements at busy public sites across the Kingdom.

The policy is a civil liability insurance toward third parties, covering bodily injury and property damage to visitors and patrons at covered facilities. Made mandatory by a Cabinet decision, it applies to establishments and activities classified as high-risk or crowded with the public, and it becomes a core requirement for obtaining or renewing Civil Defense licenses for those activities.

Implementation is being rolled out in phased stages, beginning with establishments and activities deemed highest in risk and crowd density. A Cabinet list of high-risk facilities and crowded places obligated to carry the insurance is in force, while a standing committee proposes the timelines for actual implementation by risk category.

The Insurance Authority has issued a standard model policy titled Civil Liability for Populated Areas and High-Risk Activities, setting minimum coverage limits by activity type. Hotels and similar high-occupancy facilities face a minimum coverage of SAR 10,000,000, while some workshops and lower-risk activities are set at a SAR 1,000,000 minimum. At least one licensed insurer has received final approval for a matching mandatory corporate product marketed across the Kingdom.

Premiums for public and third-party liability for events and high-risk activities currently range roughly from SAR 5,000 to more than SAR 200,000 depending on coverage limits, crowd size, sector, and risk profile. For large public events in 2026, industry guidance commonly assumes minimum liability coverage of around SAR 10 million, with higher limits for very large or particularly high-risk activities.

Organizers and facility owners obtain the insurance directly from Insurance Authority-licensed insurers or brokers. The policy is not issued through e-government service platforms. For residents and visitors, the measure is designed to add a clearer layer of financial protection when attending events and using busy venues.

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