Greece has introduced a new law requiring large businesses to carry insurance coverage against natural disasters, in a sweeping effort to strengthen economic resilience in the face of intensifying climate events. Law 5116/2024, now in effect, makes it mandatory for companies with annual gross revenues over €500,000 to insure key assets against risks such as earthquakes, floods, and wildfires.
This move comes as Greece, like many countries, contends with increasingly frequent and destructive weather patterns. The law applies broadly to businesses across all sectors, provided they meet the revenue threshold. Covered assets must include at least 70% of the value of a company’s buildings, equipment, raw materials, stored goods, production facilities, and commercial vehicles.
Certain exceptions have been outlined. Public entities, unauthorized buildings, underground or underwater facilities like mines, and agricultural operations are not subject to the requirement. Newly established companies without published financial records are also temporarily exempt. Furthermore, if a business receives two formal rejections from insurance companies, it is granted a two-year exemption from the obligation, though it must reapply once that period ends.
The law also sets firm penalties for non-compliance. Companies that fail to obtain the necessary insurance will face a €10,000 fine from the Interagency Market Control Unit (DIMEA). If they do not comply within 30 days, the fine doubles. In addition, uninsured businesses will no longer be eligible for state compensation in the event of a natural disaster, significantly raising the stakes for corporate preparedness.
Insurance companies are required to respond to coverage applications within 30 days. A lack of response is treated as a rejection, and insurers must also share data with the state to support enforcement efforts.
This legislation represents a major policy shift in how Greece manages business risk in an era of escalating environmental threats. By making insurance coverage a legal requirement rather than a discretionary expense, the Greek government aims to establish a minimum level of financial protection across the private sector. The goal is not only to protect individual enterprises from collapse after a disaster, but also to safeguard the broader economy from cascading losses.
