If you run a business in Italy, you’ve likely heard about the new requirement for insurance against catastrophic risks. It may seem like just another expense, another complication. But the truth is, this isn’t just a new law—it’s a fundamental shift in approach to protect your company’s future.

This probably applies to you. Let's take a look at how to check, what to do, and why it's so important.

What happened and why this requirement applies to you

The 2024 Budget Law (Law 213/2023, Art. 1, paras. 101–111) introduced a mandatory requirement for nearly all Italian businesses:the obligation to obtain insurance against catastrophic risks. This policy covers direct property damage to company assets caused by events such as earthquakes, floods, landslides, and inundations.

For decades, the Italian model has been based on crisis response: when a disaster strikes, the government steps in with public funds. Now, the focus has shifted from managing the "aftermath" to preventing the "before." The government is asking businesses to build up a protective shield, rather than passively waiting for public aid, which will no longer be available to those who are not in compliance.

This shift stems from an alarming statistic. Italy is among the European countries most vulnerable to natural disasters, yet it faces a dramatic insurance gap: only a small fraction of businesses are covered. You can find more details in this in-depth analysis of catastrophic risks.

The law leaves no room for interpretation: protecting company assets from these events is no longer a matter of choice.

Who is required to have insurance (and who is not)

The fundamental question every business owner asks is: "Does this requirement apply to my business as well?" The short answer is: almost certainly yes. The law was designed to cover virtually the entire Italian business sector.

Who is subject to this requirement

The main requirement is registration in the Business Register (Art. 2188 of the Italian Civil Code). All companies with a registered office or permanent establishment in Italy are required to take out this policy, regardless of their legal form, sector, or size.

Specifically,the requirement to obtain insurance against catastrophic risks applies to:

• Corporations (S.p.A., S.r.l., S.r.l.s.)
• Partnerships (S.n.c., S.a.s.)
• Sole proprietorships (including artisans and merchants)
• Cooperative societies
• Foreign companies with a permanent establishment in Italy, with respect to property located within the country.

Who is exempt from the requirement

There are few exceptions, but they are important and resolve many common questions. The following are excluded:

• Agricultural businesses (Art. 2135 of the Italian Civil Code), which benefit from a dedicated mutual insurance fund (Agri-CAT).
• Freelancers and professional firms, unless they are organized as a business entity (e.g., a Professional Partnership [STP]) and registered with the Registry of Companies.
• Businesses whose properties are subject to unresolved building code violations. Properties that do not comply with building codes are not insurable.

The Case of Rented Property: If your business operates out of a rented space, the obligation to insure the property falls on you, as the tenant using it for business purposes. In the event of a claim, however, the compensation will go to the owner, who is required to use it for reconstruction. Clear communication between tenant and owner is essential.

What you are required to insure

Once you have determined that this requirement applies to you, you need to figure out which assets to include in the coverage. The law refers directly to the balance sheet, specifying the tangible fixed assets defined in Article 2424 of the Civil Code.

Here is a clear table showing what is included and what is excluded.

Status | Type of Asset | Account Code (Asset B-II) |Examples | INCLUDED | Landand buildings | No. 1 | Warehouses, offices, and stores owned or used for business operations.| INCLUDED | Plantand machinery | No. 2 | Production lines, industrial furnaces, servers. |INCLUDED| Industrial and commercialequipment| No. 3Forklifts, computers, office furniture, shelving.EXCLUDEDGoods(inventory)-Raw materials, finished products, semi-finished products.EXCLUDEDVehiclesregistered with the PRA-Company cars, vans, trucks.EXCLUDEDAssetsunder construction and advance paymentsNo. 5Real estate or facilities not yet completed.

The rationale is to protect the physical infrastructure that enables your business to operate. The need for this measure is clear: analyses of the impact of natural hazards reveal the enormous economic cost of such events for Italy.

Updated deadlines through 2026: a calendar to help you stay on track

The deadlines for complyingwith the insurance requirement have been staggered based on company size, with additional extensions for certain sectors. This has caused a great deal of confusion, so it is essential to have a clear understanding of the situation.

Note: The classification of enterprises (micro, small, medium, large) follows Recommendation 2003/361/EC. If you have any doubts about your category, our in-depth guide on the balance sheet reclassification scheme may help you.

Here is the final schedule of deadlines to be met.

Type of businessDeadline forsigningNotesLarge enterprisesMarch 31, 202590-day grace period (penalties starting June 30, 2025).Medium-sized enterprisesOctober 1, 2025Interim deadline.Micro/small enterprises (general)December 31, 2025Deadline for most SMEs.Micro/small enterprises (tourism, hospitality, and food service sectors)March 31, 2026Extension granted by the Milleproroghe Decree.Micro/small enterprises (fishing and aquaculture sectors)March 31, 2026Extension granted by the Milleproroghe Decree.

The dates are updated in accordance with current regulations, including the conversion of decrees. It is advisable to check them periodically.

What happens if you don't comply?

What are the consequences if you fail to comply with this requirement? The answer is not a fine, but something much more severe:exclusion from any public funding, grants, or subsidies.

In short, if your business suffers damage from a flood and you aren’t insured, you won’t be able to access reconstruction funds. You’ll be left to fend for yourself when you need help the most.

This principle, reinforced by Legislative Decree No. 184/2025 (effective as of January 1, 2026), applies to a wide range of incentives. The Ministerial Decree of June 18, 2025, listed key measures such as:

• Development Contracts
• Nuova Sabatini
• Funding for innovative startups (e.g., "Smart & Start")

The real risk, therefore, is strategic: facing the consequences of a disaster on your own, jeopardizing the continuity and very survival of your business. The impact is enormous: this study on climate change and insurance estimates damages of over 300 billion euros over 50 years in Italy.

Practical steps to get you in compliance

Adapting is a strategic process. Here are the steps to follow:

1. Contact your broker or trade association. Don’t start with an online comparison site. A trusted professional can review your existing policies, help you accurately assess your assets, and negotiate the best terms. Trade associations (such as Confcommercio, CNA, etc.) often offer advantageous group policies.
2. Check the terms of your policy. Insurance companies have an "obligation to insure"—they cannot refuse to cover you. However, be sure to review the details: the deductible cannot exceed 15% of the damage, and the coverage limit must cover the cost of rebuilding the property to its original condition. Existing policies can be adjusted at the next available renewal date.
3. Sign or amend the contract. Once you’ve chosen the best option, proceed with signing the contract. Remember that this is a crucial decision that protects the physical value of your business—what’s known as working capital.

When this requirement does not apply to you

In fact, this requirement does not apply if your business does not own the tangible fixed assets covered by the law. This primarily applies to:

• Purely digital companies or SaaS companies that do not own buildings, facilities, or industrial equipment.
• Professional practices (lawyers, accountants, consultants) that are not organized as businesses.
• Freelancers not registered with the Business Registry.

If your business falls into these categories and does not have any physical assets to insure under Article 2424 of the Italian Civil Code, this requirement does not apply in practice.

Key points to remember

Catastrophe risk insurance is nowmandatory. Here’s what you need to keep in mind:

• Check if you are required to comply: If your business is registered with the Business Registry and owns physical assets (buildings, facilities, equipment), you are most likely required to comply.
• Check your deadline: Dates vary depending on the size and sector. Find out when yours is to avoid being caught off guard.
• Take action now: Contact your insurance agent or trade association to review your options and choose the coverage that best suits your needs.
• Understand the risks: Noncompliance does not result in a fine, but rather in complete exclusion from public aid in the event of a disaster—a consequence that could be fatal for your business.

Conclusion

The requirement to obtain insurance against catastrophic risks is more than just a formality. It is a strategic investment in your company’s resilience and business continuity in a context of growing environmental risks. Approaching this deadline with awareness and planning not only ensures your compliance with the law but also provides tangible protection for the value you have built.

This change in regulations is a key component for a thorough analysis of financial statements using ratios, as it introduces a new risk and cost variable that must be managed.

Don’t wait until the last minute. Taking action now means turning an obligation into an opportunity to make your business stronger and more secure for the future.