From January 1, 2025, Greek law 5116/2024 will require companies with a certain annual turnover to take out insurance against natural disasters. This law, designed to safeguard business continuity, aims to ensure that natural disaster-related financial losses are borne by insurance providers rather than businesses or the government.
Key requirements
- Insurance Coverage: Businesses must insure at least 70% of the value of their buildings and other assets (e.g., equipment, inventory, professional vehicles) against natural disasters like floods, earthquakes, and wildfires.
- Penalties for Non-Compliance: Failure to comply will initially result in a fine of €10,000, doubling if not rectified within 30 days.
- Government Support: Non-compliant businesses will be ineligible for government financial aid in case of natural disaster-related damages.
- This law underscores Greece’s commitment to building resilience and financial security for local businesses, ensuring they are equipped to recover and continue operations even after severe natural events.
Necessary measures
Companies with a Greek subsidiary should review their property insurance to comply with the new requirements and avoid penalties.
Please note that Greek companies may be covered under a German policy, which may not provide cover for these risks. To avoid gaps in cover, please contact us if you require local property cover in Greece.