Mandatory insurance for administrative liability: entry into force postponed to 1 January 2027

The requirement to take out an insurance policy covering financial losses caused to the public administration through gross negligence, introduced by Law No. 1/2026, will no longer come into effect during 2026.

An amendment to the so-called Milleproroghe Decree has pushed the implementation date back to 1 January 2027, giving public bodies an additional year to align with the new framework and address the many outstanding uncertainties. At the heart of the issue remains the fact that the cost is to be borne entirely by the individual employee. This stems from the prohibition set out in Law No. 244/2007, which prevents public entities from insuring their officials against risks arising from the performance of their institutional duties, including liability for damage caused to the State. What will happen in 2026?With the postponement, the Government intends to carry out a comprehensive review of the framework, aiming to make the insurance requirement more sustainable while preserving the core objective of the reform: safeguarding public finances and ensuring responsible, transparent management of public resources. As a result, 2026 will serve as a transitional year. Public administrations will be able to assess the impact of the reform, revise internal procedures, update delegated responsibilities, and work towards a system that, by 2027, can be implemented in a clearer, more coherent way that properly reflects the complexity of administrative action. The new deadline also creates an opportunity to shape a more balanced regulatory framework, capable of combining legal certainty, economic sustainability, and the operational continuity of public administration. For further details:Decree-Law No. 200 of 31 December 2025, converted into Law No. 26/2026;Law No. 244/2007.