A New Mechanism for War Risk Property Insurance

January 1, 2026 the new mechanism for insuring the property of business entities against war risks starts its application, under the Resolution of the Cabinet of Ministers of Ukraine No. 1541 dated November 28, 2025.

The new rules provide for direct compensation of losses for enterprises in frontline regions and partial compensation of insurance premiums for businesses throughout Ukraine. The program is part of the “Made in Ukraine” policy and will be administered by the Export Credit Agency (ECA). Compensation can only be received by those enterprises that were already official participants in the program at the time of property damage or destruction.

Direct Compensation of Losses for Frontline Regions:

  • Assistance will be provided to businesses whose property is located in Dnipropetrovsk, Donetsk, Zaporizhzhia, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Kherson, and Chernihiv Regions;
  • The maximum compensation amount is up to UAH 10 million but cannot exceed the amount of actually confirmed losses.
  • Participation in the program involves paying a voluntary one-time fee of 0.5% of the total amount of probable loss;
  • To receive payments, it is necessary to enter the facility into the Registry of Damaged and Destroyed Property and submit an application to the ECA with a full package of documents, including inspection reports and valuation reports.

Compensation of Part of the Insurance Premium Throughout Ukraine:

  • The state compensates the portion of the insurance tariff under contracts with insurance companies that exceeds 1%, but no more than UAH 1 million per contract.
  • The enterprise pays a fee of UAH 5,000 to the ECA account when submitting each application for participation in the program.
  • The procedure involves the independent selection of an insurance company, concluding a contract, and submitting the relevant application to the ECA to receive reimbursement within 30 days.

The changes are aimed at creating a clear and predictable model for protecting business assets, stimulating investment activity under conditions of aggression, and ensuring stable and predictable conditions for the recovery of Ukrainian production.

We will closely monitor further developments in this area and will report on them in future Legal News.