08
February 2024
The standard format for the professional liability insurance policy for the Saudi Building Code inspection authorities is approve
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.
