Any company which writes eligible insurance contracts may reinsure its terrorism risk with ARPC. An eligible insurance contract is one which provides insurance cover for loss or damage to eligible property and associated business interruption and public liability losses (please refer to Section 7 of the Act). Eligible property is defined as the following property that is located in Australia:
- buildings (including fixtures) or other structures or works on, in or under land
- tangible property that is located in, or on, such property
- property prescribed by regulation.
Farms can also obtain cover if they hold insurance against business interruption.
The provisions of the TI Act does not cover residential property or the contents of residential property.
The Regulations also exclude contracts of insurance which provide cover for, inter alia, workers’ compensation insurance, marine insurance, aviation insurance, motor vehicle insurance, life insurance, health insurance, private mortgage insurance, medical indemnity insurance and professional indemnity insurance.