Mandatory disaster insurance: A game changer for SMEs
Small and medium-sized enterprises (SMEs) in Italy face a significant change: from March 31, 2025, they must take out insurance policies to cover damages from floods, earthquakes, and landslides. This requirement, initially set for December 31, 2024, was postponed by Decree-Law No. 2022 of December 27, 2024. The Ministry of Economy and Finance, through Decree No. 18 of January 30, 2025, defined the implementation rules, published in the Official Gazette on February 27, 2025.
How does the new mandatory insurance work?
The regulation states that the insurance premium will be calculated based on various factors:
- Business location
- Vulnerability of insured assets
- Historical disaster data for the area
- Hazard maps and updated predictive models
Insurance companies will update premiums annually and must comply with risk tolerance limits. If these limits are exceeded, they will be unable to issue new policies and must notify the Ivass and their customers via their websites.
How much will businesses pay?
According to Unimpresa’s Research Center, the new requirement will have a significant economic impact on SMEs. The annual cost of insurance policies will depend on the risk level of the company’s location:
- Low-risk areas: between €1,500 and €3,000
- Medium-risk areas: between €3,000 and €6,000
- High-risk areas: between €6,000 and €12,000
For large companies, with multiple facilities, annual expenses could exceed €30,000.
Consequences of non-compliance
Businesses that fail to secure insurance may face financial repercussions, including exclusion from public grants, subsidies, and financial aid in the event of natural disasters. However, the decree is not retroactive, meaning previously granted aid will not be affected.
Why is this measure necessary?
The primary goal of this new regulation is to protect businesses and ensure a faster recovery after a disaster, reducing the risk of bankruptcy.
It remains to be seen how companies will react to this new obligation and whether the government will introduce incentives to ease the burden of insurance costs.
