From 1 June 2025, the obligation to insure businesses against natural disasters came into force, pursuant to Article 5 of Law 5116/2024 and the Joint Ministerial Decision (JMD) issued by the Ministries of National Economy & Finance, Development, Climate Crisis and Digital Governance.

This is an important step towards shielding business activity against climate uncertainty, aligning public support with the private insurance market.

📌 What the New Regime Specifically Provides

Mandatory insurance for at least 70% of the value of the businesses’ total assets, for risks from:

  • Forest fire
  • Floods
  • Earthquakes
  • It applies to all businesses with annual gross revenue above 500.000 euro .

❌ Exemptions from the Obligation

The JMD clearly sets out the categories that are exempt:

The State, public bodies and ETAD S.A.

Unauthorised constructions that are not included in state aid.

Ships, trains, aerial and other means of transport.

Aerial, underground, subsea infrastructure & mines.

Agricultural production, fish farming and livestock.

Newly established businesses without published financial statements.

🚨 Special Exemption Regime

If a business is unable to obtain insurance, the following procedure applies:

After 2 negative responses from different insurers, a temporary 2-year exemption is granted.

If the problem persists thereafter, and two refusals arise again, the exemption becomes permanent.

⚠️ Penalties for Non-Compliance

Non-compliance is not an option:

€10,000 fine by DIMEA.

If the business is not insured within 30 days, the fine is doubled.

Loss of state aid in the event of a natural disaster.

🧭 How a Business Should Act – AFS’s Roadmap

Our team recommends:

✅ Asset Valuation: Recording all facility and equipment assets. ✅ Insurance Compliance: Selecting the appropriate insurance product. ✅ Guidance & Audit: AFS provides full consultancy for compliance and documentation. ✅ Exemption Support: Where grounds exist, we draft and substantiate the requests to the insurers.

🔗 AFS stands by businesses, not merely so that they comply, but so that they can withstand and thrive through every climate or economic challenge.

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