Reminder: Changes to the terrorism insurance scheme

Changes to Australia’s Terrorism Insurance Scheme, as recommended by the 2015 Triennial Review by Treasury commence 1 July 2017.

The changes will include:
• broaden the definition of eligible property to include buildings with a floor space of at least 20% used for commercial purposes or which have a building sum insured of at least $50 million, whether used for commercial or other purposes (effective on contracts of insurance issued or renewed from July 1); and

• amend the Terrorism Insurance Act 2003 to extend the definition of a terrorism exclusion or exception in an eligible insurance contract to include acts described as “chemical”, “biological”, “polluting”, “contaminating”, “pathogenic”, “poisoning”, or words of similar effect.

Our previous article on this can be viewed here and the Terrorism Insurance Amendment Regulations 2017 as well as previous regulations amendments can be viewed here.