To say, “Those funds are to be used to compensate if the damage is suffered...”, the point is it's what they're compensating, right? The point is those funds are to be used to compensate the damage that is suffered. That's much better, much clearer. That's why you leave the “if it” until the end of that phrase, because you're compensating the damage that is suffered.
On June 10th, 2014. See this statement in context.