Budget Act 2024: Natural Disaster Insurance Required

Legge di bilancio 2024: scatta l'obbligo di polizze contro catastrofi naturali

2024 represents a turning point for Italian companies, with the new budget law that introduces the obligation to take out insurance against natural disasters and catastrophes.

In a climate crisis with increasingly frequent extreme events, the Italian government has taken measures to protect companies from the damage caused by such events, which in Italy have an average annual cost of about 3 billion euros. This legislation applies to all farms with registered or operational headquarters in Italy, except agricultural ones. Companies are required to cover assets such as land, buildings, industrial facilities and equipment from risks such as earthquakes, floods, landslides, floods and other disasters. Failure to comply with this provision entails the possibility of being denied public contributions, subsidies and facilities and insurance companies who refuse to offer such policies risk administrative penalties from 100,000 to 500,000 euros. According to Ania, the association of insurance companies, most large Italian companies are already covered against natural and climate risks. However, more than half of small businesses still do not have adequate coverage and will therefore have to adapt to the new legislation.The 2024 Budget Law, in particular in paragraphs 101 to 112 of Article 1, details the obligation for companies to take out insurance policies to cover the assets indicated in Article 2424 of the Civil Code. In summary, the key provisions are as follows:1. Exclusion of agricultural enterprises, with the maintenance of the current insurance system through ISMEA and AGRICAT.2. In the event of non-compliance, undertakings may not receive state subsidies or subsidies.3. Obligation on insurance companies to offer such cover, with penalties in the event of refusal.4. Limitations on overdrafts, exemptions and proportionality of insurance premiums.