Saudi Arabia Introduces Insurance for Heritage Buildings and Artworks
The Ministry of Culture and the Insurance Authority launched the ‘Cultural Insurance’ product, which will help owners of artworks and cultural assets in the Kingdom to insure and protect their properties and artifacts. It also makes available the necessary requirements to maintain them. This will help secure financial coverage, in the event of an accident that leads to the loss or damage of these cultural assets, and that is in proportion to the amount of damage and the fair value of the asset.
The cultural insurance is divided into two main products: The first is designated for heritage buildings classified as archaeological, heritage, or historical, and provides insurance coverage commensurate with the special considerations of these buildings in terms of evaluation, restoration, and the scope of risks covered by this type of asset.
As for the second product, it covers artworks that represent various types of assets and cultural activities, including works of art, exhibitions, antiques, valuable collectibles, and others to provide insurance coverage commensurate with the high value of these assets, and with the requirements for dealing with them, such as storage, display, and shipping.
Cultural insurance is one of the outcomes of an integrated project that includes a study of risks related to heritage and historical assets, which the Ministry of Culture worked on in partnership with the Insurance Authority. This is aimed at monitoring and evaluating the risks related to various heritage assets, developing appropriate mechanisms and tools to manage these risks, and developing insurance products that help provide the appropriate environment for the protection and prosperity of heritage asset activity, in addition to supporting cultural activities locally and internationally with appropriate insurance solutions.
Cultural insurance comes within the Ministry of Culture’s efforts to protect cultural assets in all their forms, as it provides support for cultural activities and protection against losses in high-value assets through insuring heritage buildings, insuring artworks, third-party damage insurance, and business interruption insurance. This provides financial stability to the cultural economy, protects it from the financial consequences of losses, and responds to the needs of exhibitions, especially those that require insurance on loaned assets, in addition to supporting adherence to best procedures and practices, and creating a safe environment for investment in the cultural sector.
Cultural insurance also comes within the efforts of the Insurance Authority in developing insurance products that keep pace with the latest developments, and providing supportive tools that are compatible with economic growth in the Kingdom under the umbrella of the Kingdom’s Vision 2030.
