Press Office, Ministry of National Economy & Finance
A joint ministerial decision issued by the Ministries of National Economy and Finance, Development, Climate Crisis and Civil Protection, and Digital Governance settles all matters concerning the obligation of businesses to insure against natural disasters, which came into force on 1 June 2025.
Article 5 of Law 5116/2024, passed on 1 July 2024, introduced the obligation to insure business premises and equipment, for at least 70% of their total assets, against forest fire, flood and earthquake.
The joint ministerial decision provides as follows:
A) It applies to businesses with annual gross revenue above €500,000.
B) The following are exempt from mandatory insurance:
a) the State, public sector bodies and the Public Properties Company (ETAD S.A.),
b) unauthorised buildings that are excluded from state relief,
c) ships, trains, aircraft and, in general, means of transport that count as equipment,
d) all overhead, underground and undersea infrastructure, including mines,
e) crops, plant production, fish farms and livestock, and
f) newly founded businesses that have not yet published financial statements.
C) There is also an exemption procedure for businesses that cannot be insured, for some or all risks and for some or all of their assets.
After receiving two refusals to insurance requests from different insurance companies, these businesses are exempt from the obligation for two years. If, after this period, they again receive two refusals from two insurance companies, their exemption from the obligation to insure against natural disasters becomes permanent.
D) Businesses that do not comply with the decision are fined ten thousand (10,000) euros by the Interagency Market Control Unit (DIMEA).
Within thirty (30) days of being notified of the fine, the business must take out insurance; otherwise the fine is doubled.
The decision is part of a wider national strategy that aims to align state relief with the private insurance market for natural disaster risks.