Starting in June 2025, all businesses with annual gross revenue exceeding €500,000 are required to obtain insurance coverage, according to Law 5116/2024 and implementing Decision 96806 EX 3-6-2025.
What the Mandatory Insurance Includes
Obligated businesses must insure, at least, against the following risks:
• forest fire
• flood
• earthquake
with a minimum coverage of 70% of the value of all assets subject to the obligation.
The coverage applies to:
• owned building facilities
• equipment and machinery
• raw materials and inventory
• merchandise
• trucks and commercial vehicles
• production means and stored products
Penalties for Non-Compliance
Businesses that fail to obtain the required insurance:
• Are subject to an administrative fine of €10,000 imposed by DIMEA.
• If they do not comply within 30 days from notification of the fine, the fine is doubled.
Additionally, from 1/6/2025 onward, uninsured obligated businesses are excluded from all forms of state aid, including housing assistance, in the event of damage caused by the above natural phenomena.
Who Is Exempt from the Insurance Requirement
The following are exempt:
• the State and public sector entities, as well as the Public Properties Company (ETAD S.A.)
• unauthorized constructions not eligible for state aid
• ships, trains, aircraft, and other means of transport considered equipment
• aerial, underground, and underwater infrastructure (including mines)
• agricultural crops, plant production, aquaculture, livestock
• newly established businesses without published financial statements
Exemption Procedure Due to Inability to Obtain Insurance
Businesses unable to secure insurance may be exempt under certain conditions:
1. If they receive two negative responses from different insurance companies, they are exempt for two years.
2. After the two-year period, they must reapply. If they again receive two negative responses, the exemption becomes permanent.
3. If the negative responses concern specific risks or specific assets, the exemption applies only to those.