Rome – The Italian government has introduced a historic mandate requiring all businesses to sign up for disaster insurance to protect against damages caused by catastrophic events such as earthquakes, floods, and landslides. This decision stems from a series of devastating natural disasters that have significantly impacted businesses across the country in recent years.
Extension of the deadline and SACE reinsurance
Initially set for early implementation, the government has extended the deadline to March 31, 2025, for compliance with the new insurance requirements. To support businesses, the national export and insurance agency, SACE, will offer reinsurance coverage of up to 50% of damages caused by catastrophic events. This initiative is estimated to provide up to 5 billion euros in coverage according to the 2024 budget law.
Eligible businesses include those with a registered office in Italy and foreign companies with organizational structures within the country.
What risks are covered?
The mandatory insurance covers damages to vital business assets such as property, equipment, industrial and commercial machinery, and land. It ensures protection against a comprehensive range of natural disasters, including, but not limited to, earthquakes, floods, and landslides.
Why this insurance mandate is important
Recent events, such as the catastrophic flood in May 2023 in Emilia-Romagna, which caused damage to 16,000 businesses resulting in 8.5 billion euros in losses, have highlighted the urgency of more proactive insurance measures. Delays in promised relief funds have left many businesses struggling to recover, further emphasizing the importance of ensuring economic stability through adequate insurance coverage.
How to comply
Businesses must subscribe to insurance policies that meet the requirements set by the 2024 Budget Law. To access the reinsurance guarantees provided by SACE, businesses must submit their application via PEC to [email protected].
A call to preparedness
Italian businesses are encouraged to act proactively and ensure compliance well in advance of the 2025 deadline. This mandate not only enhances economic resilience but also promotes the stability of entrepreneurs in the face of increasing natural disaster risks.
Stay informed and take the necessary steps to safeguard your business. For more information, visit the official SACE website or consult your local insurance company.
SACE – Riassicurazione Catastrofi Naturali
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