By a joint ministerial decision issued by the Ministries of National Economy and Economy, Development, Climate Crisis and Civil Protection and Digital Governanceall the details of the Business Insurance Obligation to natural disasterwhich came into force by the 1st June 2025.
The new arrangement is based on Article 5 of Law 5116/2024voted on the 1st July 2024and predicts that all businesses must insure their facilities and equipment at least by 70% of their total assets. Insurance coverage is about three key dangers:
What the decision provides in detail
The insurance liability concerns:
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The production and storage facilities.
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Fixed and mobile equipment.
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Infrastructure that is critical to the operation of the business.
Insurance must cover at least 70% of the total value of the business, as reflected in the latest balance sheet.
Important: Failure to comply with the new provisions may result in fines, and the contracting of the insurance policy is mandatory in procedures related to licensing and subsidies.
Who are most at risk
Special care must be shown:
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Businesses operating in forest areas or near natural aquifers.
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Industrial and craft units in earthquake zones.
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Storage storage companies with vulnerability to natural phenomena.
For compulsory insurance is considered necessary
The increase in natural disasters in recent years, due to climate change and urbanization, has brought about serious financial losses. According to available data, damage caused by fires, floods and earthquakes cost billions of annually to the Greek economy.
Insurance not only protects the business itself, but also ensures that economic stability at local and national level.
What do business should do
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To proceed immediately with insurance coverage through specialized consultants.
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To adjust their assets.
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Be informed about insurance packages that offer coverage to the three compulsory dangers.
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To ensure that the contract meets the specifications of the new legislation.
The Joint Ministerial Decision provides:
(A) The scope of companies fall, whose annual gross income exceeds EUR 500,000.
B) From compulsory insurance, excluded:
a) The State, Public Sector Bodies and Public Real Estate Company SA,
b) arbitrary constructions excluded from state aid,
(c) ships, trains, aerial and generally transport means that are included in the concept of equipment,
d). All kinds of aerial, underground and underwater infrastructure, including mines,
(e) Rural crops, vegetable production, aquaculture and livestock and
(f) The newly established companies that do not yet have publicized financial statements.
(C) In addition, the procedure for exemption for those undertakings cannot be insured, for certain or all risks and for some or all elements of their assets.
After receiving two negative answers to insurance requests from different insurance companies, these companies are excluded from the obligation to insurance for a period of two years. If, after this time, two negative answers from equal number of insurance companies are re -received, their exemption from the obligation to insure natural disasters becomes permanent.
(D) Businesses that do not comply with the Obligations of the JMD shall be imposed by the Inter -Service Market Control Unit (DIIEA) of a separate administrative fine of ten thousand (10,000) euros. The obliged undertaking shall, within thirty (30) days of the notification of the fine, be insured, otherwise the fine is doubled.
The JMD is part of a broader national strategy aimed at harmonizing state subscription and private insurance market against natural disasters.
Mandatory business insurance against natural disasters is an important step in enhancing the resilience of the Greek economy. Compliance with the new legislation is necessary, not only to avoid sanctions, but mainly to ensure the viability of businesses in times of crisis.