In Greece, the tourism sector is considered our main industry, and rightly so. According to the annual report by INSETE (Institute of the Association of Greek Tourism Enterprises) in collaboration with the Bank of Greece, tourism’s direct contribution for 2025 amounted to 32.4 billion euros (13% of GDP), and the total contribution (including multiplier effects on the rest of the economy) was estimated for the same year at between 71.3 and 85.9 billion euros (i.e., from 28.7% to 34.6% of Greek GDP).
Legal framework regarding civil liability:
In Greece, there is no single, standalone law governing the civil liability of tourism accommodation owners. Instead, the legal framework is a combination of provisions and is divided into two main pillars: liability for guests’ property (theft/damage) and liability for bodily injury or accidents (health and safety). The legislation is based primarily on the Civil Code and the Consumer Protection Act (Law 2251/1994).
1. Liability for Loss or Damage to Property (Civil Code, Articles 834–839)
The Civil Code establishes liability for the hotelier regarding items brought by the guest:
• Strict Liability (Article 834): The hotelier is liable, up to a certain limit, for any damage, destruction, or theft of guests’ belongings.
• When is the hotelier exempt? Only if they prove that the damage is due to:
- To the client themselves, a visitor, or an accompanying person.
- To the very nature of the item itself (e.g., perishable goods).
- To force majeure (e.g., a violent armed robbery that could not have been prevented in any way, or a severe earthquake).
• Money and Valuables (Article 835): For cash, jewelry, and securities, the law imposes unlimited liability when:
- The guest handed over the valuables to the management for special safekeeping (e.g., in the central safe) and the hotelier accepted them.
- The theft or damage was caused by proven negligence or willful misconduct on the part of the hotelier or their staff.
or exempts the hotelier when:
- The hotelier refused to accept them for safekeeping, even though requested to do so.
2. Liability for Accidents and Bodily Injury (Law 2251/1994, Article 8)
With regard to the safety and physical well-being of guests (e.g., slipping in the pool, injury from defective furniture, food poisoning from the restaurant), the Consumer Protection Law applies.
Civil Liability Insurance Requirement:
Civil liability insurance is not mandatory for hoteliers and owners/managers of rental apartments. However, as of October 1, 2025, under Article 3 of Law 5170/2025, civil liability insurance has become mandatory for property owners or managers who hold a Property Registration Number (PRN).
In practice, however, for tourist accommodations that partner with foreign tour operators, civil liability insurance becomes indirectly mandatory, as proof of such insurance is required to enter into a partnership agreement.
It is extremely important for tourism business owners to bear in mind that a very large percentage of their clients are from abroad, and claims against them can be litigated in the client’s country of residence. Consequently, legal costs to defend against such claims skyrocket, and if the business owner is found liable for negligence, the damages awarded far exceed those of Greek courts.
Consequently, policies with high coverage limits and coverage for legal expenses outside Greece should be selected to avoid unpleasant surprises that can dramatically affect the financial position of the business and the business owner.
Furthermore, it is important to understand that third-party liability insurance essentially covers any bodily injury or property damage that may occur on the premises maintained by the business.
There is often a misconception, because the title of the policies refers to the term “General Third -Party Liability,” that all cases involving a claim related to the business owner’s civil liability are covered. By way of example, we note that while such coverage is often not included in the policies, it can be added upon request, including coverage for civil liability arising from:
- Presence of a swimming pool, Lifeguard services, Employer’s liability (liability toward employees),
- Product liability (in the event of food and beverage service at the accommodation),
- Theft/burglary of a room, Organization of excursions and outdoor events.
- Liability arising from the operation of sports facilities/gyms/spas/baths,
- Liability arising from the operation of playgrounds,
- Third-party damages resulting from environmental damage, car theft and property damage to customers’ vehicles within the business’s parking lot, as well as extremely important coverage in the event that the business building is adjacent to neighboring buildings, including property damage to neighboring buildings caused by fire and plumbing leaks pipes.
It is also extremely important to specify whether a policy is“loss-occurrence-based”or“claims-made,”as this determines whether the insurance company will compensate for a loss after the policy is canceled.
It is therefore absolutely essential to make a complete and thorough record of the insured’s requirements and not simply provide coverage packages that do not actually cover the risks arising from the size and type of the specific tourist accommodation.
At Asfalysis Insurance Services, drawing on 23 years of expertise and specialization in business risks, we understand and document these risks so that our insured can choose whether to retain or transfer to the insurance company, in part or in full, the risks arising from their business activities.
*Insurance Agent, MSc, Asfalysis Insurance Services