That would beat the purpose of insurance.

Insurance is about risk management, and poking a hole is creating some risk, especially for the local environnement and nearby shores.

What would the penalty be for not being insured?

The decision make sense on principle. To have any effect, it needs a penalty and enforcement.

Just stop talking to them, they have no jurisdiction

If they try and claim there’s no jurisdiction, the other party might disagree. Especially if the contract has a provision that defines which jurisdiction/court is responsible for resolving disputes.

A guess is finding a proper and legal way to break a contract is preferable for companies. An arbitrary breach of contract might make a company look unreliable, could make it more difficult to sign any contract in the future.

IANAL so I have no idea if they’d risk penalties as well.

Yes, and that’s how it should be if a politician of any party is convicted for serious offense, eg violence or hatred. Laws should apply equally to all.

Which means such law should be carefully crafted to prevent its abuse for partisan purpose, supressing the opposition, etc.

For instance making it a judicial process, not an arbitrary administrative/executive decision. Restricting this to specific well-defined offenses. Making it a time-limited ban, not a lifetime ban.

Do wear special solar googles to protect your eyes while watching the solar eclipse.

They cost 2-3 EUR, I bought one at my local optician. Some pharmacist sell them as well.