WAR AND POLITICAL RISK INSURANCE
Protection against the consequences of war is needed when damage to property, interruption of operations or another war-related event could consume a substantial part of the owner's invested capital. In 2026, Ukrainian businesses have access to market insurance products and a state programme that compensates certain losses or part of the insurance premium under established conditions.
The owner should identify the property or investment, required amount of protection and relevant events, and then compare offers by coverage, exclusions, deductible, term and price.
Which War-Related Events Can a Policy Cover?
A property interest connected with a building, equipment, inventories, an investment, a loan or other assets can be insured if the insurer offers the relevant cover. The owner determines the real value of the property and how much its loss would remove from the business. For a bank or investor, an insurance policy may also be a condition of financing.
The list of insured events depends on the contract. The owner reviews the territory of coverage, exclusions, deductible, limit and term. Two offers with the same insured amount may provide very different real protection, so the amount payable for a specific event and the policyholder's obligations after a loss are important for the decision.
In 2026, the Ministry of Economy confirms the operation of market products and the state programme for business. The programme is administered by the Export Credit Agency and includes compensation for damaged property in designated frontline territories and partial compensation of insurance premiums for businesses throughout Ukraine.
The insurance limit should be compared with the loss the owner can cover from their own funds. The entrepreneur may retain part of the potential loss as a self-funded reserve and transfer the largest exposure to the insurer. This division can reduce the premium while protecting capital against an event capable of stopping the business.
For pledged property, the director agrees the terms with the bank because the lender may be the beneficiary. For leased property, the interests of the building owner and the tenant who has invested in equipment or improvements are identified separately.
How to Compare Insurers' Offers
The starting point is the value of the asset and the possible loss. If equipment is worth UAH 20 million but the insurance limit covers only a small part of it, a low premium means little by itself. The owner compares the limit, deductible, waiting period, territorial restrictions and the list of documents required for an insured event.
The insurance premium is a business expense, so the owner compares it with the margin and the cost of downtime. For expensive equipment or property without which sales stop, protection may be economically justified. For a small asset, the entrepreneur may instead create an internal reserve.
When insuring inventories, the director takes account of changes in their value during the year. For equipment, replacement value or another value agreed in the contract is relevant. For real estate, it is useful to distinguish the building, equipment and tenant improvements separately.
UBC can help the owner describe the asset and financial interest, compare offers and contractual terms, and link insurance to a loan, investment or lease agreement. The client receives a clear answer on how much the protection costs and what amount may be received if an insured event occurs.
Before paying the premium, the owner agrees the procedure for notifying the insurer, the list of documents and the method of assessing the loss. The future payment is determined by the terms of the contract.
State Programme and Documents for Payment
The state programme for insuring property against the consequences of war has operated since 1 January 2026. In March, the maximum compensation for damaged or destroyed property was increased to UAH 30 million and the maximum compensation of the insurance premium to UAH 3 million.
Following changes adopted in July 2026, a company may apply for compensation of the insurance premium from the 31st day after the insurance contract is concluded and for 30 days after it ends. For the annual limit of up to UAH 3 million, the state uses the date on which the insurance contracts were concluded.
For damaged property, the programme permits one consolidated application covering all affected property. The amount of loss may be confirmed by a valuation report or a forensic expert's opinion. For production equipment and engineering networks, an application may be submitted once the required documents have been collected without waiting for the information to be entered in the Register of Damaged Property.
Insurance uses documents confirming title to the property or another insurable interest, the value of the asset, its location, technical characteristics and protection measures. The insurer may request additional information depending on the subject of the policy.
When an insured event occurs, the director acts within the deadlines and conditions of the contract: notifies the insurer, preserves evidence of the event and loss, and works with competent authorities and valuers where required. A prepared document package saves time and gives the owner a clear process for obtaining payment.
Support in selecting war and political risk insurance is available for investment, lending and trade projects. A UBC specialist will explain the conditions in detail and help prepare information for the insurer. We will be pleased to answer additional questions and support the sustainable development of your enterprise. We wish you every success in business.
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The main areas of activity of the UBC group of companies are consulting, financial and investment services; search and selection of business investors and raising loans; purchase and sale of established businesses in Ukraine, Europe and other countries; IT services; and commercial property development in Ukraine and abroad. For the development of your business: company registration in Ukraine, ready-made companies in the EU, company registration in England and other countries, corporate law, offshore jurisdictions and offshore companies, business consulting, audit, certification, LLC registration, registration of financial companies, asset management companies, mutual investment funds, registration of joint-stock companies, securities and bond issues, and support for foreign investment.
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We are always focused on the result you need and will do everything possible to achieve it within the required timeframe, taking your wishes and requirements fully into account. Why is it better to start a business in Ukraine with UBC? The answer is simple: we have considerably more practical experience, resources and opportunities.
Frequently Asked Questions
Where should the work begin?
For the initial assessment, the owner identifies the asset or investment, location, value, desired term and amount of insurance protection.
Can an Initial Comparison Be Carried Out Remotely?
Yes. Using electronic copies of documents for the asset and a brief description of the property and possible events, the owner can receive an initial comparison of available terms.
How are the timeframe and cost agreed?
The cost depends on the number of assets, insurance offers, financing agreements and the amount of legal work. The client agrees the terms before work begins.
What Does the Owner Receive after Comparing Insurance?
The owner receives a comparison of coverage, limits, deductibles, price and payment conditions, together with documents for negotiations with the insurer.
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