Civil Defense Mandates Insurance for High-Risk Activity Licensing

Riyadh: The General Directorate of Civil Defense has announced a new requirement for obtaining third-party cooperative insurance when issuing or renewing licenses for certain high-risk or densely populated activities. This initiative aims to enhance public safety and compliance with regulatory standards.

According to Saudi Press Agency, the first phase of this requirement focuses on specific sectors including chemical warehouses, used-oil storage, hazardous medical-waste storage, wholesale wood activities, general warehouses, car-tyre storage, paint manufacturing, and the production of industrial detergents. These industries must adhere to the new insurance prerequisite as part of their licensing process.

The mandate is designed to ensure that businesses are aligned with approved regulatory standards, safeguard the rights of individuals and entities, and mitigate potential financial risks resulting from accidents. The Civil Defense emphasizes the necessity for establishments to secure the required insurance before proceeding with license applications or renewals, which supports a cohesive approach to preventive and regulatory measures.

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