Safeguarding enterprises: Ensuring protection against catastrophic events

With the rise in occurrences of earthquakes, floods, and landslides, these events are posing substantial risks that businesses must account for. Therefore, recent legislation has introduced new measures to avoid underestimating catastrophic events like those observed in recent years. This is not just about fulfilling a requirement; it is an opportunity to enhance the protection of business properties and the equipment utilized in business operations. Andrea Galbiati, Head of Insurance at Banca Ifis, sheds more light on this subject.

What are the changes introduced by the 2024 Budget Law concerning the requirements for businesses to cover catastrophic losses?

The 2024 Budget Law introduced the requirement for all companies registered in the Company Register to take out an insurance policy to cover damages caused by natural disasters and catastrophic events.

The required policy provides coverage for physical and direct damage resulting from catastrophic events, including earthquakes, floods, landslides, and overflows.

The legislation primarily aims to enhance the resilience and security of Italian businesses against natural disasters, thereby ensuring increased economic and production continuity.

The latest ministerial decree has extended the deadline for complying with the regulatory obligation to 31 March 2025 for large companies (with a suspension of sanctions until 30 June), to 30 October 2025 for medium-sized companies, and to 31 December 2025 for small and micro companies.

What are the risks for companies that fail to comply with the regulations, and how does Banca Ifis assist them in this requirement?

Non-compliant companies do not face direct penalties; however, they may become ineligible for the allocation of subsidies, contributions, and financial benefits from the State budget, including those intended for natural disasters and catastrophic events.

Banca Ifis can support its customers by offering a flexible and comprehensive product that not only covers the risks outlined in the regulations but also provides additional and supplementary guarantees, including protection for goods, advance indemnity, and a guarantee for indirect damages caused by business interruption, thereby safeguarding business continuity in the event of a claim.

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What assets are to be insured? What obligations do companies have in relation to insuring assets that are rented, leased, or hired and therefore not owned by them?

The insurance policy is required to cover the assets used in the insured’s operations, including land, buildings, machinery, and any type of plant and equipment.

The plants and machinery to be insured are those outlined in Article 2424 of the Italian Civil Code, which are recorded in the assets section of the balance sheet and used in business operations.

Regarding assets not owned by the company, such as rented buildings and leased machinery, the Italian Ministry of Enterprises and Made in Italy (MIMIT) has recently clarified that the responsibility to obtain an insurance policy lies with the company utilizing these assets in its business operations. This is unless the machinery is already adequately insured by the owner, such as the building’s lessor or the leasing company for equipment, as per legal requirements.

Promotional message and placement of insurance contracts. Before subscribing, read the information set at www.netinsurance.it and in any case available from the distribution network. Policy of Net Insurance S.p.A. distributed by Banca Ifis S.p.A.

08 April 2025