A change has recently come into effect affecting all Italian companies — large, medium, small and micro — which, in terms of its impact and scope, marks a turning point in the way companies must manage certain risks. The Italian legislator has introduced the obligation to take out insurance against catastrophic events and natural disasters.
(by Ernesto Pucci)
This regulatory change comes in a context characterised by three now evident factors: the increase in the frequency of extreme weather events, the significant gap between exposure to natural risks and the actual level of insurance coverage in Italy, and, lastly, the increasingly urgent need to strengthen the resilience of the production system.
The events of the last fifteen years (the earthquake in Emilia-Romagna in 2012, the earthquakes in Central Italy in 2016–2017, floods in Veneto, Liguria and Tuscany, Sardinia, Marche and Emilia-Romagna) have shown that a natural disaster is not only a cause of death and material damage, but also a systemic phenomenon capable of disrupting entire supply chains, slowing down national production and putting territories and communities under severe strain.
Perhaps the most significant aspect of the regulation is that the obligation applies regardless of the ownership of the assets. Companies must insure land, buildings, plant and machinery — i.e. fixed assets (Article 2424, paragraph I, item B-II, nos. 1), 2) and 3) of the Italian Civil Code) — even when such assets are not owned but are held under a rental or leasing agreement. This means that even those who use a rented warehouse, leased machinery or a plant granted for use must verify whether the obligation falls on their company or whether a policy has already been taken out by another party (usually the owner, the leasing company, etc.). In the latter case, it is necessary to carefully check the conditions: limits, events covered, insured values and any exclusions. In other words, it is not enough to check “if” there is a policy, but also “how” that policy actually covers the assets and what responsibilities fall on the company using them.
The system has been introduced gradually and takes into account the differences in size between companies. Large and medium-sized companies must already comply with the obligation from 30 June and 31 October 2025, respectively, while for small and micro-enterprises this obligation will come into force on 31 December 2025. However, it should be noted that many companies that were already insured before the requirement came into effect did not have to replace their existing policy immediately, but are only required to adapt it to the new requirements at the next renewal date.
The minimum compulsory cover includes five categories of risk: earthquake, flood, inundation, overflow and landslide. However, illegal or non-compliant buildings, buildings under construction, agricultural properties and, above all, indirect damage, such as business interruption, loss of profit or supply disruptions, are excluded.
The latter exclusion is one of the most sensitive points. While it is true that the law protects the material value of assets, it is equally true that business continuity — especially for SMEs — is often the real factor of vulnerability. This is one of the reasons why many companies are supplementing their compulsory insurance policies with additional cover.
The insurance obligation is not just a technical requirement. Companies that are not in compliance, although not directly penalised, cannot access public subsidies, concessions, aid and support measures, including those related to natural disasters. Law No. 213 of 30 December 2023, Article 1, paragraph 102, provides that “failure by companies to comply with the insurance obligation must be taken into account when allocating grants, subsidies or financial benefits from public resources, including those provided for in the event of disasters and catastrophes”.
More specifically, the MIMIT, by decree of 18 June 2025, stipulated that “compliance with the insurance obligation must exist and be verified at the time of the disbursement of the concessions granted”, and at present, in the event of a violation, the right to access at least the following incentives is lost: “Development contracts”; “Redevelopment measures for areas in industrial crisis pursuant to Law 181/89”; “Aid scheme aimed at promoting the creation and development of small and medium-sized cooperatives (Nuova Marcora)”; “Support for the creation and development of innovative start-ups throughout the country (Smart & Start)”; “Incentives to support research and development projects for the conversion of production processes within the circular economy”; “Fund for the protection of employment levels and the continuation of business activities”; “Mini development contracts”; “Incentives for businesses to promote and strengthen the social economy”; “Support for the self-production of energy from renewable sources in SMEs”; “Start-up financing”; and “Support for start-ups and venture capital active in the ecological transition”. Furthermore, each Ministry and/or Agency that provides subsidies, incentives and public contributions is required to identify which of these are excluded in the event of non-compliance with the insurance obligation.
The obligation to take out insurance is also closely linked to the duties of directors. The management of catastrophic risks falls within the scope of the appropriate organisational structures required by Article 2086 of the Italian Civil Code and the Crisis and Insolvency Code. Now that there is an obligation, not having coverage or not having adequate coverage can be interpreted as a failure to prevent risks and protect business continuity.
With the deadline of 1 January 2026 approaching, all companies, even those that already have a catastrophe policy in place, must:
a) verify the existence and adequacy of the current policy, especially if it was taken out before March 2025 (exclusions, maximum limits, uncovered amounts and insured values in light of the new criteria);
b) examine assets used but not owned (leasing, rental, loan for use) and the related contractual clauses;
c) evaluate additional coverage for indirect damage and business continuity;
d) document these choices from a governance perspective, especially in international groups where this Italian obligation must be coordinated with global policies.
In conclusion, the introduction of compulsory catastrophe insurance marks an important cultural shift: risk management can no longer be left to experience or chance alone, but requires structured tools, transparency and accountability. It is a change that affects businesses, directors, insurance companies and, more generally, the entire economic system.
