Mandatory Business Insurance: What Law 5162/2024 Introduces
Mandatory Business Insurance protecting businesses from natural disasters is now a legal obligation in Greece, according to Law 5162/2024, which comes into effect in 2025. This new legislation introduces significant changes in how businesses must manage risks related to natural phenomena such as earthquakes, floods, and wildfires.
What Does the Law Require?
Law 5162/2024 makes insurance against natural disasters mandatory for both businesses and vehicles. Specifically:
- All businesses owning property, equipment, or inventory are required to be insured.
- Insurance must cover at minimum the basic damages caused by natural events.
- The obligation applies regardless of the size or industry of the business.
- Insurance coverage must be active by the end of 2025, and may be subject to inspection by relevant authorities.
Which Businesses Are Affected?
The law applies to:
- Retail and wholesale stores
- Industrial and manufacturing units
- Hotels and tourism-related businesses
- Warehouses and logistics operations
- Commercial vehicles used for business purposes
Why Is Insurance Important?
Insurance against natural disasters is not just a legal requirement — it is a strategic tool for business continuity and resilience. Damage from natural events can lead to temporary or permanent shutdowns, loss of revenue, and high recovery costs.
With the right insurance coverage, businesses can:
- Ensure operational continuity
- Reduce financial risk
- Strengthen trust with clients and partners
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