Israel Launches Pilot Program to Compensate Businesses for Protection Money Damage
Translated & summarized from Maariv by baba
The story in 5 lines · by baba
- Businesses can receive up to 2 million shekels for protection money-related damages.
- A new pilot program by the Tax Authority offers this compensation.
- Damage to owner's residence is also covered in specific cases.
- Strict conditions apply for eligibility and claim submission.
- Claims must be filed within seven days of the damage.
For the first time, Israeli business owners who refuse to pay "protection money" (known locally as "protektsion") and suffer direct damage as a result may receive compensation from the state. A pilot program, managed by the Tax Authority, will offer up to 2 million shekels for damage to a business's structure, inventory, or equipment. Uniquely, the program also covers damage to the business owner's residence under these circumstances.
To be eligible, business owners must operate a legal enterprise, possess a valid business license, and have an active file with the Tax Authority. They must also comply with security and risk-reduction measures set by their insurance company. For structural damage, proof of legal construction is required.
Claims must be submitted online to the Tax Authority's compensation fund within seven days of the damage occurring. Crucially, claimants must not repair the damage before submitting the claim and allowing an assessor from the Property Tax department to inspect the site. Minor cleanup, such as removing broken glass, is permitted. The compensation is strictly for direct damages, excluding indirect losses or harm to third parties. The Tax Authority estimates that processing claims could take up to eight months.
