Understanding the Evolving Landscape of Business Insurance in Italy

Recent legislative changes in Italy have introduced mandatory insurance coverage for businesses against damages caused by natural disasters and catastrophic events. This complete guide, updated for 2025, clarifies the scope of these regulations, outlining which businesses are affected, what assets must be insured, and key exemptions to consider.

Who is Obligated? A Clearer Picture

The mandate extends to all companies registered in Italy, and also foreign companies with a permanent establishment within the country, and are held to registration in the Register of Companies according to Article 2188 of the Civil Code. This obligation stems from Law 30 December 2023, n. 213. However, a notable exception exists for agricultural enterprises as defined by Article 2135 of the Civil Code.

What Assets must Be Insured? Defining the Scope

Businesses must ensure that all assets used in their operations, as defined under active section B-II, numbers 1, 2, and 3 of Article 2424 of the Civil Code, are insured, irrespective of ownership.This includes assets held under lease or rental agreements. The key here is the *use* of the asset in business operations, not necessarily ownership.

This requirement encompasses a broad range of assets, including:

• Land and buildings
• Plant and machinery
• Industrial and commercial equipment

Key Exemptions: What’s Not Covered?

While the mandate is broad, several key exemptions exist:

Properties with Building Abuses

Real estate burdened by building code violations or constructed without proper authorization is explicitly excluded from mandatory insurance coverage, as stated in Article 1, paragraph 2 of Ministerial Decree n. 18/2025.

Properties Under construction

Properties still under construction are also exempt. Article 1, paragraph 1, letter b) of Ministerial Decree no. 18/2025 refers specifically to fixed assets listed under active section B-II, numbers 1, 2, and 3 of Article 2424 of the Civil Code, which excludes assets classified under number 5 (properties under construction).

Vehicles Registered with the PRA

According to DM 30 January 2025, n. 18, industrial and commercial equipment, including machinery, tools, and related components, are generally covered. However, vehicles registered with the Public Register of Automobiles (PRA) are excluded from the mandatory insurance coverage.

Practical Considerations for businesses

Goods for Rent, Leasing, or Rental

Even if a company doesn’t own an asset outright, if it’s used in the business and falls under the defined categories, it must be insured. This highlights the importance of reviewing lease agreements and ensuring adequate coverage.

Collective Policies: A Viable Option

Businesses can fulfill their insurance obligations by participating in collective insurance policies. This can be a cost-effective and efficient way to ensure compliance.

Adjustment for Existing Policies

For businesses with existing insurance policies, Article 11, paragraph 2 of Ministerial Decree n. 18/2025 allows for adaptation to the new regulations starting from the first renewal or useful receipt of the existing policy.

Homes for Promiscuous Use

If a property is used for both residential and business purposes, the insurance obligation applies to the portion of the building used for business activities.

The Broader Context: Why This Matters

This mandatory insurance initiative reflects a growing awareness of the economic risks posed by natural disasters. In 2024 alone, Italy experienced over €8 billion in damages due to extreme weather events, according to data from the Italian National Agency for New Technologies, Energy and Enduring Economic Development (ENEA). By mandating insurance coverage, the government aims to mitigate the financial impact of such events on businesses and the economy as a whole.

“The goal is to create a more resilient business environment, capable of withstanding the increasing challenges posed by climate change and other catastrophic events.”

– A representative from the Ministry of Economy and Finance

conclusion: Ensuring Compliance and Protecting Your Business

Navigating these new regulations requires careful attention to detail. Businesses should review their existing insurance coverage, assess their assets, and consult with insurance professionals to ensure full compliance.By taking proactive steps, companies can protect themselves from financial losses and contribute to a more resilient Italian economy.