Responsibility of operators when using high-risk facilities

Order of the Ministry of Internal Affairs of Ukraine No. 1081 of 28.12.2023 "On Approval of the Procedure and Conditions for Insurance of Liability of Business Entities and Other Legal Entities Using High Risk Objects for Damage that May Be Caused as a Result of Emergency Situations"

https:// zakon.rada.gov.ua/laws/show/z0147-24#Text

Legal entities that own or use high-risk facilities must

1. conclude a liability insurance agreement for the entire period of use of such an object;
2. enter into a new liability insurance agreement for a new term, not later than ten business days before the termination of the previous insurance agreement. In this case, the new agreement must enter into force no later than the day following the termination of the previous liability insurance agreement.

The term of the agreement is set by agreement of the parties, but cannot be less than 1 year.

The cost of insurance is calculated individually depending on the class of the facility, the types and quantity of substances on the territory of the facility, the state of fire safety and security at the facility, the existing history of losses, etc.

A deductible is a share of the loss that the insured pays at his or her own expense. The amount of the deductible is deducted from the insurance payment.

Most often it works like this:

• by agreement of the parties, an unconditional deductible of %, usually 1% of the sum insured, is set for property and environmental damage;
• a zero deductible is set for compensation for damage to life/health.