Effective March 31, all companies (excluding agricultural companies) based in Italy are required to purchase property insurance coverage for natural disasters, including floods, earthquakes, and landslides. Noncompliance may result in significant sanctions on insurers and/or loss of government incentives to companies.
While this decree initially applied to in Italy of all sizes, an updated decree, no. 39/2025 — officially published on March 31 — postpones the deadline for the implementation of natural catastrophe mandatory insurance to:
October 1, 2025, for medium-sized enterprises.
January 1, 2026, for small and micro enterprises.
The deadline for large enterprises remains March 31, but sanctions will not be triggered for a further 90 days, which means any failure to comply with the insurance obligation will not be taken into account in the assignment of contributions, subsidies, or financial benefits of a public nature, and for contributions in the event of calamitous and catastrophic events.
At least two of the three criteria listed below must be met to be characterized as as an organization of a certain size:
Micro and small enterprises: headcount not exceeding 50 employees (annual average); annual turnover not exceeding €10 million; balance sheet total not exceeding €10 million.
Medium-sized enterprises: headcount not exceeding 250 employees (annual average); annual turnover not exceeding €50 million; balance sheet total not exceeding €25 million.
Large enterprises: headcount exceeding 250 employees (annual average); annual turnover exceeding €50 million; balance sheet total exceeding €25 million.
The new decree does not expressly modify the previous decree’s requirement to adapt existing policies (that include at least one natural catastrophe cover) on the first policy renewal or mid-term payment installment date.
Here’s what businesses need to know:
Coverage is mandatory for buildings, equipment, and land against natural disasters.
Noncompliance by insurers may lead to fines of between €100,000 and €500,000.
Required coverage limits and specific deductibles vary based on the sums insured.
New property policies must be implemented by March 31, October 1, or January 1 depending on the size of the company. Existing policies must comply by next renewal or premium installment.
Companies with localized property underliers in global programs should include natural catastrophe coverage and discuss the new regulation with their global or local insurance carrier partner. Local standalone coverage can be placed in the local market.
Lockton Global Solutions stays ahead of changing insurance regulations around the world and has been working with our local stakeholders on this issue since its onset. For more on how you can stay informed and ensure compliance to protect your assets and operations, please contact our team.
