State support program for businesses affected by the war: compensation under insurance contracts

The compensation program under the war risk insurance contract is to reduce financial losses before they occur. The entrepreneur insures his property, and the state compensates part of the costs of the insurance premium. This program operates throughout Ukraine, except for temporarily occupied territories as of 11/28/2025, and allows you to receive up to UAH 1 million in compensation per year.

The full-scale war has presented Ukrainian business with unprecedented challenges, where the issue of asset preservation and financial stability has become crucial. To support entrepreneurs, the state has introduced a compensation mechanism in accordance with the Resolution of the Cabinet of Ministers No. 1541 of 11/28/2025. It provides for partial compensation for the value of property destroyed or damaged as a result of the armed aggression of the Russian Federation, as well as compensation for insurance premiums under war risk insurance contracts. The program is implemented by PrJSC “Export Credit Agency”, giving businesses the opportunity to choose the optimal format of state support and build an effective system for protecting their assets. The law firm “DE-JURE” provides business support at every step of the way to implement the compensation program under the war risk insurance contract. In this article, we will take a detailed look at the program, as well as how the “DE-JURE” team can help.

State support for preventive business protection through war risk insurance

Along with the mechanism for compensation for losses, the state has introduced a second, no less important business support program – compensation for costs of preventive protection through war risk insurance. Its key idea is to reduce financial losses before they can occur. The entrepreneur insures his property, and the state compensates for part of the costs of the insurance premium. This approach allows businesses to protect assets in advance and increase their own financial stability in war conditions.

This program operates throughout Ukraine, with the exception of temporarily occupied territories as of 11/28/2025, and allows you to receive up to UAH 1 million in compensation per year. Unlike the program for compensation for damaged or destroyed property, which applies only to ten high-risk regions, the insurance model is available to a much wider range of business entities. Thus, businesses in Lviv, Vinnytsia or other regions can take advantage of this format of state support.

It is important that both programs work in parallel. If the property is located in a high-risk area, the entrepreneur has the right to choose one of the programs or combine them into a hybrid protection model. If the business is located in another region, only the insurance cost compensation program is available. In addition, the program does not compensate for losses incurred before January 1, 2026. If the property was damaged earlier, it is necessary to use other legal mechanisms to compensate for losses.

To participate in the insurance program, a business entity concludes a property insurance contract against war risks with an insurance company. Such a contract must meet clearly defined requirements:

• insurance coverage must apply exclusively to war risks, without including other insured events;
• the insured amount cannot exceed the real value of the property on the date of conclusion of the contract;
• The objects of insurance can only be buildings and structures (production, administrative, warehouse), separate premises in their composition (offices, workshops), objects of unfinished construction, started after January 1, 2021, as well as external and internal engineering communications and equipment;
• the property belongs to the business entity on the right of ownership and is used in its activities;
• the term of the contract is one year.

The insured is the business itself, and the term of the contract cannot exceed one year.
Before joining the program, it is necessary to take into account important legal nuances:

• compensation for the insurance premium is paid by the Agency (PrAo) exclusively within the limits of the state budget. In the absence of funding, compensation is not made, and the paid insurance premium is not returned;
• the right to compensation is lost in the event of early termination of the insurance contract (except for the case of full insurance payment) or failure to pay the insurance payment in full.

Thus, the preventive insurance program is an effective but financially responsible tool that gives businesses the right to compensation, but does not guarantee its unconditional payment without the availability of budgetary resources.

Financial side of the program

The financing mechanism of the preventive insurance program provides that the entrepreneur initially pays the full insurance premium at his own expense, and after the expiration of the contract, he can receive partial compensation from the state. The calculation of compensation is carried out according to the formula: (insurance rate – 1%) × insured amount. It is this approach that allows you to significantly reduce the actual cost of insurance for a business.

Practical example: an enterprise insured a production building for 30 million UAH at a rate of 3%. The total insurance premium was 900 thousand UAH. After the contract expires, the state compensates (3% – 1%) × 30 million = 600 thousand UAH. Thus, the real costs of the business for insurance will be only 300 thousand UAH, which is three times less than the initial amount.

At the same time, a maximum compensation limit has been set – up to 1 million UAH per year for one business entity together with related parties under all insurance contracts. If the calculation by the formula exceeds this threshold, the compensation is limited to the maximum amount.

It is also worth considering additional costs: the program provides for a mandatory payment of UAH 5,000 for each contract and full payment of the insurance premium. From a risk management perspective, insurance is the optimal solution for protecting high-value assets or businesses that are critically dependent on continuous production.

Who is not eligible for the program

There are certain restrictions on the insurance program introduced to protect budget funds, reduce financial risks, and prevent the participation of entities with non-transparent or problematic activities. Participation in the program is not provided for the following categories of business entities:

• Non-residents of Ukraine and companies registered under foreign law;
• Enterprises for which a bankruptcy, liquidation, or official cessation of activity procedure has been opened;
• Businesses with existing tax debt as of the first day of the month preceding the application;
• Recipients of state aid who previously violated the terms of its provision or used budget funds for purposes other than their intended purpose;
• Legal entities and individual entrepreneurs subject to sanctions by the National Security and Defense Council of Ukraine, as well as companies with sanctioned beneficiaries;
• Businesses directly or indirectly related to citizens of an aggressor state or terrorist structures;
• Entities subject to restrictive measures of the European Union;
• agricultural sector enterprises not registered in the State Agrarian Register.

Thus, the program is designed for companies that operate transparently and comply with legal requirements.

How to receive compensation under a war risk insurance contract

The mechanism for receiving insurance premium compensation is step-by-step and requires strict adherence to the established procedure. It is important to prepare documents in advance and understand the sequence of actions, because it is on this that the successful receipt of state support depends. The main steps for receiving compensation are as follows:

1. Submitting an application for participation in the program. Together with a package of documents for the insurance company, submit an application for participation in the program using the Agency’s form and pay a mandatory contribution of UAH 5,000. for each separate insurance contract.
2. Verification by the insurer. The insurance company analyzes the submitted materials and within a few days notifies in writing about inclusion in the program or refusal.
3. Conclusion of an insurance contract. After confirmation of participation, a war risk insurance contract is concluded and the full insurance premium is paid.
4. Submission of documents for compensation. After the contract expires, you must apply to the Agency with an application for compensation and attach a specific list of documents: title documents, copies of applications, contract, confirmation of premium payment, certificate of absence of tax debt, current extract from the Unified State Register, documents of the signatory.
5. Consideration and payment. The Agency considers the application for up to 30 days (with a possible extension) and, in case of a positive decision, provides for the transfer of funds.

Compliance with this procedure allows the business to exercise the right to compensation and reduce the financial burden from insurance.

How DE-JURE helps with compensation programs under an insurance contract

The DE-JURE company provides businesses with comprehensive legal support in the process of participating in state compensation programs, in particular under war risk insurance contracts. The work begins at the planning stage: specialists conduct a preliminary audit of the company, checking compliance with all established criteria and requirements of the programs. This allows you to immediately assess the real chances of receiving compensation.

The next step is to form an optimal asset protection strategy. DE-JURE helps you choose the most appropriate format – a compensation program, insurance or their combination in the form of a hybrid model, taking into account risks, financial capabilities and strategic goals of the business. Special attention is paid to consultations on choosing an insurer and analyzing the terms of insurance contracts.

The company provides coordination with appraisers, prepares a full package of documents, supports interaction with the Agency and state authorities, and in case of refusal provides legal support for appealing decisions. Such a systematic approach minimizes formal risks and significantly increases the likelihood of successfully obtaining compensation.