The Implementing Decree on mandatory insurance against natural disasters for businesses in Italy is now official!

The 2024 Budget Law (Law 213/2023) introduced an insurance obligation for businesses with a registered office in Italy and for foreign companies with a permanent establishment in the country. The aim is to ensure greater economic resilience in the event of natural disasters.
This regulation will take effect on March 31, 2025, requiring all businesses to be covered by an insurance policy to protect their assets from catastrophic events.
Many businesses are still unaware of the impact of this new regulation and the consequences of not being adequately insured.
Without specific coverage, companies could face severe financial difficulties in the event of damage caused by extreme natural events. Furthermore, failure to comply with this obligation may result in exclusion from public grants, subsidies, and financial assistance.

Who Must Take Out the Insurance?
The insurance obligation applies to all businesses with a registered office in Italy, regardless of size or sector. Foreign companies with a permanent establishment in Italy and registered in the Companies Register are also included.
The regulation applies to all types of businesses, including sole proprietorships, partnerships, and corporations.
However, certain categories are exempt from the obligation, including:

• Agricultural businesses (as per Art. 2135 of the Civil Code),
• Buildings constructed without planning permission or affected by building violations,
• Publicly owned properties.

 
Which Assets Must Be Insured?
Companies must take out an insurance policy covering direct damage to business assets, including:

• Land
• Buildings, including structures, water and electrical systems, elevators, freight elevators, fences, and sewage systems
• Machinery and equipment, including electronic and numerically controlled devices
• Industrial and commercial equipment

 
Which Natural Events Are Covered?
The mandatory insurance covers damages caused by the following natural disasters:

• Earthquakes: Seismic activities caused by tectonic movements that may result in destructive tremors.
• Floods: Overflow of rivers due to intense and prolonged rainfall, potentially damaging infrastructure and buildings.
• Inundations: Sudden accumulation of water in normally dry areas, caused by heavy rainfall, storm surges, or overflow of artificial basins.
• Landslides: Ground collapses due to water infiltration, earthquakes, or geological conditions that can compromise soil stability and structures above it.

 
Insurance Premiums and Deductibles
The insurance premiums will be determined based on the specific risk profile of the business, considering factors such as geographic location, structural vulnerability of buildings, and climatic conditions in the area.
A deductible of up to 15% of the damage amount will be applied, while the coverage limits will be structured as follows:

• Up to €1 million: 100% of the insured amount covered.
• Between €1 million and €30 million: 70% of the insured amount covered.
• Above €30 million: Coverage freely negotiated between the parties.

 
What Should Companies Do Now? Next Steps
✅ Check whether your company is subject to the obligation and identify which assets need to be insured.
✅ Analyze insurance options: Consult Assiconsult to find the most suitable solution.
✅ Sign the insurance policy: Ensure that the contract is in place by March 31, 2025.
✅ Monitor regulatory updates: Stay informed about any changes to the regulation.