The 2024 Budget Law (213/2023) introduced an important innovation for the business world, namely the obligation for companies to take out insurance against damage caused by natural disasters.
This measure is part of a context increasingly characterized by extreme climatic events and aims to protect businesses from potential significant economic losses.
The obligation in question concerns all companies with registered office in Italy and those with a permanent establishment in our country, registered in the Business Register – with the exception of agricultural entrepreneurs whose choice to protect themselves remains an optional instrument – and concerns damages to land, buildings, plants, machinery and industrial and commercial equipment, caused by catastrophic events such as earthquakes, floods, landslides, inundations, flooding.
Companies will have until 31 December 2024 to take out the insurance policy, given that starting from 1 January 2025, the regulatory requirement will come into force.
Paragraph 102 of Law 213/2023 specifies that “The failure of companies to comply with the insurance obligation (…) must be taken into account in the assignment of contributions, subsidies or financial benefits from public resources, also with reference to those provided for in the event of calamitous events and catastrophes.”
Therefore, mainly, compliance with the obligation to take out insurance against catastrophe events will become a fundamental requirement for obtaining public funds and economic incentives reserved for businesses, including those intended for the reconstruction or support of businesses in the event of calamitous events.
Lawyer Simona Maruccio
Graduated in law with top marks, he began his career as a startupper two years ago with the digital publishing house Leo Libri. He is currently President of Leotech srls, which he helped found. He deals with the internationalization of companies, marketing and communication,
Resources to manage the added cost of insurance premiums. However, I also see it as an equalizer since all businesses, regardless of size, will be required to have basic insurance coverage to operate. This can create a level playing field where companies are better prepared for unforeseen events, ultimately benefiting the entire market in the long run.
Hello and welcome to World Today News. Today we have lawyer Simona Maruccio and entrepreneur Leandro Rampazzo with us to discuss the new insurance requirements introduced by the 2024 Budget Law. Thank you both for joining us.
Simona, as a lawyer, how do you see the impact of this new obligation on companies? Can you explain the legal implications of not complying with the law?
Lawyer Simona Maruccio: Of course, thank you for having me. The new law has significant implications for companies in terms of financial consequences if they fail to comply. As stated in paragraph 102, non-compliance will affect their eligibility for public funds and economic incentives, which includes assistance in the event of calamitous events. This could potentially harm companies financially if they suffer damage from a natural disaster and are not covered by insurance.
Leandro, as an entrepreneur, what are your thoughts on this new requirement? Do you think it will help protect businesses from financial loss?
Entrepreneur Leandro Rampazzo: Thank you for inviting me. I believe the new insurance obligation is a positive step for businesses as it will provide some financial protection in the event of natural disasters. It’s crucial for companies to have adequate coverage to ensure their continuity and recovery after such an incident. However, it’s also important to consider the cost of insurance premiums and how this might impact smaller businesses that may already be struggling financially.
Simona, could you expand on the types of businesses that are exempt from this requirement?
Lawyer Simona Maruccio: Agricultural entrepreneurs are exempt from this obligation, but it’s worth noting that they still have the option to take out insurance if they wish to do so. The intention is to support and protect the agricultural sector, which traditionally faces unique challenges due to its dependence on weather patterns and environmental factors.
Leandro, as someone who works with startup companies, do you see this new requirement as a barrier to entry for small businesses or more of an equalizer in the market?
Entrepreneur Leandro Rampazzo: It could potentially be a barrier to entry for smaller businesses that may not have the financial
