Why is business insurance important and what does the new mandatory insurance law provide?
Business insurance protects companies against losses arising from a wide range of unforeseen events, such as fire, theft, damage caused by natural disasters, and more. It is one of the most fundamental obligations—and a vital investment—for safeguarding your business, as it ensures that you can continue to meet your obligations even after a catastrophic incident.
The new Business Insurance Law 5116/2024 (Government Gazette A’ 100/03.07.2024) introduces mandatory insurance coverage against natural disasters. According to Article 5, as of 1 January 2025, businesses with annual gross revenues exceeding €2 million will be required to maintain insurance coverage, among others, against the risks of flood, earthquake, and forest fire.
The insurance policy must, at a minimum, cover material damage caused by the above risks to owned building facilities, as well as to other business assets at a coverage rate of at least 70%, including equipment, raw materials, inventory, and professionally used vehicles. At the same time, from that date onward, businesses subject to this obligation will no longer be eligible for state aid for material damages to the above assets resulting from such risks. Non-compliance with the new legislation will result in an administrative fine of €10,000.
At Piraeus Bank, in collaboration with leading insurance providers, we actively support Greek businesses by offering high-quality insurance solutions tailored to your specific needs—ensuring comprehensive protection against every potential risk.