What OSOPO is
OSOPO is compulsory insurance of the civil liability of a hazardous facility owner for harm caused by an accident at that facility. It is governed by Federal Law No. 225-FZ of 27 July 2010. If an accident occurs, the insurer compensates harm to the life, health and property of victims, as well as harm from the disruption of their living conditions, within the amounts set by law.
An important feature: under the law, victims include not only outside people and organisations but also the facility owner's own employees.
Which facilities must be insured
Article 5 of Law 225-FZ lists the following hazardous facilities located in Russia:
- hazardous production facilities subject to registration in the state register;
- hydraulic structures (dams and similar) subject to entry in the Russian register of hydraulic structures;
- liquid motor fuel filling stations;
- lifts, lifting platforms for disabled people, escalators (except escalators in metro systems) and passenger conveyors (moving walkways).
Facilities located within nuclear energy sites are outside the scope of the law. The duty to insure lies with the owner — the company or sole trader operating the facility as owner, tenant or on another legal basis. A policy is issued for each facility separately.
Sums insured and payouts
The sum insured cannot be chosen freely: Article 6 of the law (as amended by Law No. 628-FZ of 29 December 2022) sets it depending on the type of facility and the maximum possible number of victims.
| Facility | Sum insured |
|---|---|
| Facilities requiring a safety declaration, more than 3,000 possible victims | RUB 9,750,000,000 |
| Same, more than 1,500 up to 3,000 | RUB 1,500,000,000 |
| Same, more than 300 up to 1,500 | RUB 750,000,000 |
| Same, more than 150 up to 300 | RUB 150,000,000 |
| Same, more than 75 up to 150 | RUB 75,000,000 |
| Same, more than 10 up to 75 | RUB 37,500,000 |
| Other facilities requiring a declaration | RUB 15,000,000 |
| Coal mines without a declaration, more than 50 victims | RUB 250,000,000 |
| Chemical, petrochemical and oil refining facilities and mines with up to 50 victims (no declaration) | RUB 75,000,000 |
| Gas distribution and consumption networks | RUB 37,500,000 |
| Other hazardous facilities | RUB 20,000,000 |
Maximum payouts per victim:
- death — RUB 3,000,000 to those entitled to compensation, plus up to RUB 40,000 for funeral expenses;
- harm to health — up to RUB 3,000,000;
- disruption of living conditions — up to RUB 300,000;
- property of an individual — up to RUB 750,000;
- property of an organisation — up to RUB 1,000,000.
Penalties for having no policy
Operating a hazardous facility without an OSOPO contract is an offence under Article 9.19 of the Code of Administrative Offences (KoAP). The fine is RUB 15,000 to 20,000 for officials and RUB 300,000 to 500,000 for legal entities. On top of that, if an accident happens without a policy, the owner compensates all victims, including employees, out of its own funds.
What drives the price
OSOPO insurance rates are set by the Bank of Russia, and insurers cannot change them at will. The final premium depends on:
- the type of hazardous facility and the industry;
- the sum insured, which is set by law;
- the factors provided for in the Bank of Russia rates, including those reflecting the history of accidents and claims at the facility.
As a result, OSOPO prices differ little between insurers, and the choice should be based on service and claims handling.
How to buy and choose an insurer
- The insurer must hold a Bank of Russia licence for OSOPO and be a member of the professional association — the National Union of Liability Insurers (NSSO).
- The OSOPO contract is a public contract: the insurer may not refuse to conclude it with a facility owner.
- A contract is concluded for each facility for at least one year. At the owner's request it can be issued electronically with a qualified electronic signature.
- Prepare data from the hazardous facility register or the hydraulic structures register, the safety declaration (if required) and the estimated number of possible victims.
See the catalogue under Insurance companies and request a quote via the request form.
Claims
After an accident the owner notifies the insurer, takes steps to limit the harm and assists the investigation. Victims or their representatives file claims with the insurer together with documents on the harm suffered. Payouts are capped by the limits for each type of harm listed above. Disputes between legal entities and the insurer go through a pre-trial claim and the commercial (arbitration) court.
Common mistakes
- One policy for several facilities. The law requires a contract for each hazardous facility.
- The wrong facility category or an understated number of possible victims, so the sum insured is lower than required.
- Forgotten lifts and escalators in shopping and office buildings: they are hazardous facilities under the law too.
- A gap between the end of the old contract and the start of the new one.
- Expecting OSOPO to cover damage to your own property and downtime. That requires commercial property insurance, and harm above the limits or outside accidents calls for general liability insurance.
Workers at hazardous sites can additionally be protected with employee accident insurance.
