Israel Launches Pilot Program for Businesses Damaged by Extortion
Translated & summarized from Ice by baba
The story in 4 lines · by baba
- New Israeli pilot program offers up to 2 million shekels for extortion-related damages.
- Program covers direct damages to businesses and residences from protection money refusal.
- Claims require a police report and exhausted insurance, with a 7-day submission window.
- Damaged property cannot be repaired before official assessment to maintain eligibility.
The Israel Tax Authority has launched a new pilot program offering financial protection to business owners whose property or homes were damaged due to refusal to pay protection money or after filing a police complaint. This initiative, based on government decision 4299, covers damages incurred between September 24, 2026, and November 23, 2026. Eligible business owners can receive compensation of up to 2 million shekels for direct damages to equipment, inventory, business premises, and even private residences. This aims to provide critical support for those left without aid after malicious acts.
To qualify for compensation, business owners must operate a legal business with a valid license and be registered with the Tax Authority. They must prove they filed a police complaint recognized as related to extortion and demonstrate they have exhausted insurance options, meaning their claim was rejected by their insurer or they could not obtain coverage for malicious damage despite prior insurance. Additionally, full compliance with the insurance company's security requirements is necessary, and for structural damage, proof of legal construction is required.
The application window is narrow, requiring swift action. Claims must be submitted online through the Tax Authority's compensation fund system within seven days of the damage incident, along with all relevant documents. The claim processing can take up to eight months. The compensation covers only direct damages, excluding indirect losses such as lost workdays or third-party damages.
A crucial warning from the Tax Authority states that damaged property must not be repaired before an official assessment. Business owners are forbidden from fixing damaged property before submitting a claim and before a property tax appraiser visits the site. Unauthorized repairs may prevent damage assessment and lead to claim rejection, although clearing glass and debris for safety reasons is permitted.
