Government expands list of property eligible for war risk insurance under state program
Insurance companies received the opportunity to offer clients war risk insurance (with the right to subsequent premium compensation) without the need to verify and document that a specific asset is used directly in the company’s core operations.
This right is established by resolution of the Cabinet of Ministers of Ukraine No. 887 dated July 8, 2026, on amendments to the procedure for providing partial compensation for the cost of property of business entities destroyed or damaged as a result of the armed aggression of Russia, as well as partial compensation of insurance premiums under war risk insurance contracts, approved by government resolution dated November 28, 2025 (No. 1541).
As reported in an information letter from the Insurance Business association, the condition regarding the use of affected property in core activities is thus canceled for the insurance component of the procedure.
The resolution also clarifies the terms of the insurance contract itself. Thus, in the list of mandatory conditions of an insurance contract for participation in the program, coverage is now defined through a new, broad concept of "insured property" rather than through the old closed list. In addition, the restriction under which the requirement to separately specify the insurance sum, tariff, and payment for war risks applied only to a certain part of the property has been lifted – now this requirement applies to the entire object of insurance without exception.
The baseline for calculating the annual compensation limit has also been changed. The size of the limit itself – UAH 3 mln per business entity per calendar year – remains unchanged. The only change is which contracts are included in the limit for a specific year.
The insurer is now obliged to independently verify the compliance of the contract with the terms of the program when including a client. Previously, verification of the compliance of the insurance contract itself with the conditions took place only at the stage of compensation payment by the Export Credit Agency (ECA), meaning after the conclusion of the contract.
The resolution also introduces a new mechanism for coordinating direct state compensation for property located in high-risk territories with insurance indemnity. This change formally concerns not premiums, but compensation for damaged/destroyed property, yet directly affects interaction with insurers. Previously, receiving any indemnity from third parties (including insurance, even partial) was grounds for a total refusal of state compensation. Now, a refusal of state compensation applies only when insurance (or other) indemnity covers the loss in full; in the case of partial insurance indemnity, state compensation is not canceled but reduced by the amount of the payout received.
Furthermore, the resolution extends the deadline for late enrollment in the premium compensation program until August 1, 2026, for enterprises that concluded a war risk insurance contract after January 1, 2026, but did not submit an application to the insurer to participate in the premium compensation program at the time of conclusion.
As reported, the Cabinet of Ministers authorized the ECA starting January 1, 2026, to carry out on behalf of the state the payment of partial compensation for the cost of property destroyed or damaged as a result of the war and partial compensation of insurance premiums under war risk insurance contracts.
According to the resolution, the ECA stops accepting applications for compensation when the total volume of submitted relevant applications exceeds the volume of budget allocations provided for in the State Budget of Ukraine for the corresponding year under this program.