If we take the war risk factors, such as shelling or looting, then the general insurance contract should not protect against these risks. Unless it is a specialized insurance policy against the risks of political violence, which indemnifies damages for acts of armed aggression, war, even undeclared war and acts of terrorism. Agricultural companies, especially those located in the south of Ukraine, often ask whether their insurance required by the bank or voluntary insurance policy can include such risks. Unfortunately, it cannot. This was supposed to be a specialized policy, but after February 24, 2022, this protection is no longer available.
The only exception is insurance of grain transportation by the sea. After the announcement of the so-called "green corridor", Lloyd's underwriters developed programs that allow to insure war risks within the given route. At the same time, to buy such coverage is somewhat complicated from a geographical point of view. You need access to London insurance market to get it.
We also advise agrarian companies to keep in mind that if their insured property is located in the occupied territory, they should not count on reimbursement. The insurance company will not be able to provide an inspection of the property, and the owner will not be able to collect the necessary set of documents. It is better not to conclude such insurance contracts at all. And if they have already been signed earlier, then it is worth to stop them. Even banks that require insurance through mortgage or collateral contracts are not insisting on such coverage.
The author of the article is Vitaly Lebedovskyi
Source AgroPortal
