The Italian government is reportedly considering a three-month extension for businesses to secure mandatory insurance against natural disasters, moving the deadline from March 31, 2025, to June 30, 2025. This decision comes in response to widespread calls from trade associations and small and medium-sized enterprises (SMEs) who have expressed concerns about the tight timeline for compliance with this new requirement.
The obligation to purchase disaster insurance was introduced with the 2024 budget law, aimed at protecting businesses from damages caused by catastrophic events such as earthquakes, floods, and landslides. However, the upcoming deadline has raised alarms, especially for approximately 1.5 million businesses operating in rented premises, as highlighted by Confesercenti, a prominent trade association.
Confesercenti has emphasized that many businesses are racing against time to meet the new insurance requirements. "This is a race against time, especially for the approximately 1.5 million businesses in commerce, tourism, and services that operate in rented spaces," the organization stated. Without insurance, businesses risk losing creditworthiness and access to public funding, which could be detrimental, particularly in the event of a natural disaster.
The regulations currently do not impose penalties for non-compliance, but the implications of not securing insurance are severe. Businesses that fail to comply may lose access to funding opportunities and disaster relief, and administrators could face liability for damages incurred during catastrophic events.
As of now, there are about 2.8 million properties designated for tourism, commercial, and laboratory use in Italy, with more than half being rented. This means that over 1.5 million tenants must consult with property owners to verify construction characteristics and existing insurance coverage. "It is crucial that businesses are granted sufficient time to adjust existing contracts and secure appropriate coverage," noted Confesercenti.
Adding to the urgency, the interministerial decree that was supposed to provide operational guidance was only approved on February 27, 2025, just a month before the original deadline. This has left many businesses feeling unprepared and uncertain about the requirements and options available for securing insurance.
Moreover, the Italian insurance market has until March 28, 2025, to adapt their policies to meet the new legal requirements. However, as of now, the IVASS portal, which is intended to help businesses compare insurance offers, is not yet active, further complicating the situation for enterprises trying to make informed decisions.
Patrizia De Luise, president of Confesercenti, has called for a more equitable and sustainable approach to disaster insurance, suggesting that the tax on these policies, currently at 22.5%, be reduced to 2.5%, similar to accident insurance policies. She also emphasized the need for a comprehensive safety plan, which is currently lacking.
In the meantime, the Council of Ministers is scheduled to meet on March 28, 2025, where the issue of extending the insurance deadline will be discussed. This meeting could potentially set the stage for a much-needed reprieve for businesses scrambling to comply with the new regulations.
Critics of the current situation argue that the government has been slow to respond to the pressing needs of businesses facing uncertainty and additional costs during an already challenging economic climate. Confcommercio, another key business association, has echoed these sentiments, urging for a reasonable extension to allow for adequate compliance time, especially given the recent regulatory developments.
"The deadline is objectively incompatible with the ability of nearly four million businesses—small, medium, and large—to meet the requirement based on a regulatory framework issued just last month," said a representative from Confcommercio. The association has reiterated its call for the government to intervene and provide clarity on the insurance requirements.
As the deadline approaches, many are left wondering whether the government will take decisive action to alleviate the burden on businesses. The situation remains fluid, with many stakeholders closely watching the developments from the Council of Ministers.
In conclusion, the potential extension of the mandatory disaster insurance deadline could provide much-needed relief for businesses across Italy, allowing them to navigate the complexities of compliance while ensuring they are adequately protected against unforeseen natural disasters. However, the clock is ticking, and the government must act swiftly to address the concerns raised by the business community.
