On March 28, 2025, the Italian Council of Ministers made a significant decision to postpone the deadline for small and medium-sized enterprises (SMEs) to obtain anti-catastrophe insurance policies. This move comes just days before the initial deadline of March 31, 2025, and reflects the concerns voiced by various trade associations regarding the financial burdens on businesses during a challenging economic period.
The new deadlines for compliance are now set for October 1, 2025, for medium-sized enterprises and January 1, 2026, for small and micro enterprises. Large enterprises, however, will still be required to meet the original deadline of April 1, 2025. Nevertheless, they will not face penalties for 90 days following this date; during this grace period, any non-compliance with the insurance obligation will not affect their eligibility for public financial contributions, subsidies, or assistance related to catastrophic events.
This postponement was largely influenced by the feedback from business organizations, which argued that the original requirement would impose an additional financial burden on companies already navigating uncertainties in the market. The new regulation, introduced under Article 1, comma 105, of Law No. 213 of December 30, 2023 (Budget Law 2024), mandates that all businesses registered in the Business Register, except for agricultural enterprises, must secure insurance against damages from natural disasters and catastrophic events such as floods, earthquakes, and landslides.
The insurance coverage must include assets listed in Article 2424 of the Civil Code, encompassing buildings, plants, and machinery utilized in business operations. For businesses renting property, the lessee is responsible for insuring the assets unless the owner has already done so. In cases where commercial activities are conducted within residential buildings, only the commercial area needs to be insured.
Failure to comply with the insurance requirement does not result in specific penalties; however, businesses that do not secure the necessary coverage risk being denied public aid in the event of a disaster. Insurance companies are required to adjust their products to meet the new requirements by March 31, 2025, with provisions allowing for adjustments during the renewal process or at the next premium payment for policies already in effect.
On March 26, 2025, the Productive Activities Committee of the Chamber rejected an amendment proposed by the Fratelli d'Italia party, which sought to delay the insurance obligation until October 31, 2025. In response to the postponement, Confesercenti, a prominent trade association, expressed its approval, stating that this extension would allow businesses to better navigate the insurance market and enable lawmakers to address critical issues within the provision.
Confesercenti highlighted a significant concern regarding the imbalance between landlords and tenants. The association pointed out that while tenants bear the cost of the insurance policy, the coverage primarily benefits the property owners. This situation poses a particular challenge for small and medium-sized enterprises in sectors such as tourism, commerce, and services. Furthermore, Confesercenti emphasized the absence of a comprehensive land safety project, which could enhance the effectiveness and coherence of the insurance mandate.
As the March 31 deadline approached, various business organizations had been vocal about the need for clarification and a potential extension of the insurance requirement. The new deadlines, which now extend into 2025 and 2026 for different categories of businesses, aim to alleviate some of the immediate pressures faced by SMEs.
In summary, the Italian government’s decision to postpone the anti-catastrophe insurance requirement marks a crucial adjustment in response to the economic realities confronting many businesses. This change not only provides SMEs with additional time to comply but also opens the door for further discussions on the insurance landscape and its implications for the future.
As Italy continues to grapple with the challenges posed by natural disasters and economic instability, the importance of adequate insurance coverage cannot be overstated. The government’s actions reflect a growing recognition of the need to balance regulatory requirements with the practical realities faced by businesses across the country.
The ongoing dialogue between lawmakers and trade associations will be essential in shaping a more equitable and functional insurance framework that supports all sectors of the economy.
