Towards the introduction of mandatory Directors' & Officers' liability insurance in Saudi Arabia

The Saudi Central Bank (SAMA) is introducing a new requirement for publicly listed financial institutions. These companies and institutions will soon be required to underwrite Directors' and Officers' (D&O) liability insurance to cover professional misconduct, including errors, negligence, and the dissemination of inaccurate information.

This coverage is designed to protect Directors, Board members and the company itself against any fines or lawsuits that may arise from their decisions.

D&O liability insurance does not exempt members of the Board of Directors from their legal responsibilities or from sanctions resulting from regulatory violations.