The government has simplified business insurance against war risks
The Cabinet of Ministers of Ukraine has expanded the options for insuring business property against war risks and updated the rules for state compensation of insurance premiums. From now on, insurance companies can offer such policies without having to confirm that a specific asset is used in the company’s core business.
These changes are enshrined in Cabinet of Ministers Resolution No. 887 of July 8, 2026, which amends the procedure for providing partial compensation for the value of property destroyed or damaged as a result of armed aggression by the Russian Federation, as well as compensation for insurance premiums under insurance contracts covering war risks.
According to the “Insurance Business” Association, the requirement that insured property be used exclusively in the enterprise’s core business has been abolished for the insurance component of the program.
The document also clarifies the requirements for insurance contracts. Instead of a limited list of items, the broader concept of “insured property” now applies.
In addition:
- the requirement to separately specify the insured amount, premium rate, and insurance payment for war risks applies to the entire insured property, not just to its individual parts;
- insurers are required to independently verify whether the contract complies with the terms of the state program at the time of its conclusion. Previously, such verification was conducted only during the payment of compensation by the Export-Credit Agency (ECA).
The resolution also changes the mechanism governing the interaction between state compensation and insurance indemnity.
Previously, receiving any insurance payment automatically deprived a company of its right to state compensation.
From now on, compensation will be denied only if the insurance payout fully covers the losses. If the insurance payout is partial, the company will be able to receive state compensation, but the amount will be reduced by the amount of insurance compensation already received.
The maximum amount of compensation remains at 3 million hryvnias per business entity per calendar year.
At the same time, the government has changed the procedure for determining which contracts are taken into account when calculating this annual limit.
In addition, the deadline to join the insurance premium compensation program has been extended until August 1, 2026, for businesses that entered into insurance contracts covering war risks after January 1, 2026, but did not submit an application to participate in the program when taking out the policy.
As a reminder, effective January 1, 2026, the Export-Credit Agency (ECA) is authorized to provide, on behalf of the state, partial compensation for the cost of property damaged or destroyed as a result of war, as well as to reimburse a portion of the insurance premiums under war risk insurance contracts.
At the same time, the ECA will stop accepting applications if the total volume of submitted applications exceeds the amount of budgetary funding allocated for the relevant program in the state budget.
Previously, Ukraine simplified the process of obtaining compensation for damaged or destroyed property of businesses in frontline territories. From now on, for all affected property, it is sufficient to submit a single application without waiting for the data to be entered into the State Register.
The Verkhovna Rada of Ukraine adopted, in the second reading and as a whole, Bill No. 12295-d, which provides for compensation for the costs of mandatory civil liability insurance for owners of land vehicles (OSCPV) for certain categories of the population.
