Damage over one billion between Sicily and Calabria, but thousands of micro businesses risk being left without compensation. The requirement for catastrophe policies, designed for environmental prevention, could turn into a trap.
According to initial estimates, the Cyclone Harry which hit Sicily, devastating ports, bathing establishments, production and hospitality activities, infrastructures and roads located especially along the Ionian coastal strip and that overlooking the Strait of Sicily, caused damages of over 1 billion euros. A figure well above the valuation of 741.5 million made by the company Regional civil protection. In fact, lost income from productive activities which should receive compensation and contributions must be added to this amount.
The emergency request and the role of prevention
The President of the Calabria Region, Roberto Occhiutoexplained that the request for the state of emergency «was deliberate. We asked the government for 300 million for damage to infrastructure and to compensate private individuals for damages.”
The Minister of Civil Protection, Nello Musumeciduring the inspection in Santa Teresa di Riva, in the Messina area, one of the most affected places, underlined that thanks to the action of prevention no victims or injuries were reported.
Trade and tourism on their knees
But if deaths have been avoided, the toll remains dramatic on an economic level. Commercial activities have suffered a blow that risks compromising the spring and summer seasons, traditionally a strong tourist attraction. Confcommercio he called for “rapid interventions to restore infrastructure and to support damaged economic activities so that they can return to operating in normal conditions as soon as possible”.
Tourist activities are especially saddened. “The exceptional storm surges that hit the coast have devastated factories, seriously damaged infrastructure and compromised equipment that represents the result of years of investments and work”, he declared Cna Sicily. “We are faced with an emergency that risks bringing a pillar of the regional tourism economy to its knees,” he added Mario Faziopresident of Cna Balneari Sicilia.
The crux of catastrophe policies
Help, at least on paper, should come from catastrophe policiesthe tool designed to protect businesses and relieve the State of the burden of compensation. In this situation, however, the mechanism risks not working. The implementing decrees have introduced a distinction between large companies and SMEs. For large companies the subscription obligation began on 31 March 2025, for medium-sized companies on 1 October 2025 and for small and micro businesses, including sole proprietorships, from 1 January this year. The legislation protects smaller companies more, imposing rigid limits on insurance companies, while leaving greater freedom of negotiation to large ones.
A South made up of micro businesses
The problem is structural. The entrepreneurial fabric of Southern Italy is almost entirely made up of micro and small businesses. According to Istat and Censis, around 1.25 million companies operate in the South, over 27% of the national total. Micro ones, even with nine employees, exceed 96%, equal to around 1.2 million companies, often family-run. The small ones, with 10-49 employees, number around 40,000, while the medium and large ones do not reach 1%. The main sectors are trade, services, tourism and agriculture.
The double risk: no compensation and denied credit
It is precisely this universe of tiny businesses that suffered the bulk of the damage from Cyclone Harry. They are the same ones who had the obligation to obtain catastrophe insurance from 2026. Have they done so? The law is clear: in the event of a catastrophic event, the company is not insured will not be able to access refreshments or public contributions. The entrepreneur will have to cover the damages out of his own pocket. Furthermore, without insurance, the company is considered fragile, with the real risk of being denied access to bank credit. Damage that adds to the damage from bad weather.
And even for those who have subscribed to the policies, the path is not simple. «Some entrepreneurs», denounced Musumeci, «told me that the companies were starting to be Byzantine: “this isn’t a cyclone, it’s a storm, a series A or series B storm”. A language that I do not accept.” A. is expected on Monday Council of Ministers to decide on the state of emergency and an initial allocation for immediate needs.
