State support for war insurance: companies breathe a sigh of relief!

State support for war insurance: companies breathe a sigh of relief!

On July 12, 2025, Danilo Hetmanets, Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, expressed concerns about financing war insurance for companies in Ukraine. Hetmanets demanded that the state cover part of the cost of these insurance policies to reduce financial risks for companies during the ongoing military conflict. In his opinion, the risks associated with war are significant for companies, while the costs of private insurance are often prohibitive. In this context, he highlights the lack of a mass insurance system for war risks in Ukraine.

Private individuals already have the option of insuring their homes against possible destruction caused by military actions. Hetmanets is now calling for government support to introduce a program that will partially cover companies' insurance expenses and ensure their reimbursement. He emphasizes that such a program could be crucial for the Ukrainian economy.

Challenges for insurance coverage

The subject of war and insurance coverage is complicated. The term “war” includes armed struggles between states or groups of states and is defined by a declaration of war or an ultimatum. During times of war, the traditional insurance principle often does not work because the damage it causes is ruinous for insurers. Damage caused by war is usually excluded from property and liability insurance, which often leaves companies out in the cold.

An example of this problem is the exclusion clause in fire insurance. This excludes damage caused by war or war-like events, civil war and other unrest. Globally, this exclusion of war applies and the burden of proof usually lies with the insurer. In addition, insurance contracts must also take into account the penalty clauses that influence insurance coverage.

In the case of Ukraine, many insurers have removed “political risks” from their contracts. This forces logistics companies to carefully plan their routes and clarify situations with their partners in order to prevent potential financial damage. The liability of companies depends on the diligence of the businessman, which brings additional challenges.

Alternatives and strategies for companies

However, there are options for companies that want to protect themselves against war risks. Specialty insurance solutions offer specific coverage for “passive war risks” such as terrorism and sabotage. As a rule, however, insurance coverage expires after seven days from the start of war in the country of residence, which underlines the urgency of strategic planning.

Overall, Hetmanez's commitment and the state's support are crucial to establishing a comprehensive insurance system for companies. This could not only create the basis for economic stability during the war, but also increase confidence in the economic environment in Ukraine.

For further information on the challenges in the area of ​​war insurance and possible solutions, such as special insurance solutions that extend beyond the war clause, visit 112.ua and sup-ma.de.