How Should Businesses Act in the Event of Property Damage Caused by War?

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How Should Businesses Act in the Event of Property Damage Caused by War?


“How Businesses Should Act in the Event of Property Damage Caused by Armed Aggression: A Step-by-Step Plan” is a practical guide developed by the Ukraine Recovery Committee of the European Business Association with the support of BDO in Ukraine. It is designed to help companies properly document losses and initiate the compensation process.


For the fourth consecutive year, Ukrainian enterprises have been facing the risk of property damage and obstacles to conducting business operations. It is important to know how to act in such cases in advance, in order to protect your rights and obtain compensation for any losses incurred. 

The guide clearly explains the actions businesses should take immediately following an incident, how to act in compliance with legislation and which documents to prepare to substantiate losses. It is a practical tool that helps companies respond quickly and systematically to crisis situations.

The material covers:

  • Assessment and documentation of losses (evidence base): recording damage, collecting supporting documents, and conducting an independent valuation of losses. Proper documentation is essential for court proceedings, insurance claims and potential state or international compensation.
  • Tax implications and accounting for destroyed property: damage to assets requires not only the recording of losses, but also the correct reflection of these losses in accounting and tax records. This involves notifying the tax authorities of lost documents, restoring accounting data, taking an inventory and writing off destroyed assets. Proper documentation ensures transparent financial reporting and helps to avoid issues during audits.
  • Options for employers if the enterprise is damaged: if the enterprise is damaged and work cannot continue, the law provides several options: declaring downtime; transferring employees to remote working; temporarily reassigning employees to other positions; granting leave (paid or unpaid); and suspending employment contracts. These measures help to preserve employment relationships and minimise financial risks.
  • State programmes to support business (recovery and compensation): the government offers a range of tools to assist enterprises affected by war, including grants for production recovery, insurance mechanisms and planned tax and customs incentives for investment.
  • Checklist for managers: a list of key documents and procedures to prepare in advance. Taking a proactive approach will help to quickly record losses, initiate the compensation process and minimise risks in the event of an emergency.



Як діяти бізнесу в разі пошкодження майна внаслідок війни



This document is intended for informational purposes only and does not constitute individual legal advice. We recommend verifying the current legislation and seeking professional legal assistance before making any decisions.

If you have any questions or require further consultation, please contact the BDO team in Ukraine.

Key Contact

FAQ (Frequently Asked Questions)

Inventory — a procedure for verifying the actual existence of assets and recording changes resulting from damage to or destruction of assets.

Compensation for losses — the process of obtaining financial compensation for damaged or destroyed property through state, international, or insurance mechanisms.

Independent loss assessment — the valuation of damaged property by a certified expert for the purposes of subsequent compensation or submission of documents to a court or insurance company.

Suspension of the employment contract — the temporary suspension of duties by both the employee and the employer in situations where the business is unable to operate due to war damage.

Downtime — an officially recognised status under which a company’s operations are suspended for reasons beyond the employee’s control, including damage to production facilities.

Write off of assets — an accounting transaction that records the derecognition of property destroyed or lost as a result of hostilities.

Insurance mechanisms — specialised insurance instruments that enable businesses to obtain compensation for losses resulting from property damage, including war related risks.

Documenting damage — the process of collecting evidence, including photographs, videos, inspection reports, and documentation from relevant authorities, required to substantiate the occurrence and extent of losses.

Manager’s checklist — a ready to use list of actions and documents that should be kept readily available to ensure a prompt response to property damage and the effective initiation of compensation procedures.