Australia has chosen not to include cyber attacks in its coverage of terrorist incidents. It’s an interesting omission and one that other governments are sure to look at. Time to check if your own insurance covers you for acts of cyber terrorism…
A recent review of the Terrorism Insurance Act by the National Audit Office has opted to leave protection for cyber incidents off the table – for now.
The Act was established in 2003 after the September 11 terrorist attacks to address market failure in terrorism insurance coverage, as an interim reinsurance measure while the appropriate cover was unavailable on the private market.
Managed by Treasury’s Australian Reinsurance Pool Corporation (ARPC), the $13.4 billion fund covers losses involving commercial property, business interruption losses and public liability, with insurers paying premiums to the ARPC for the coverage.
Importantly, the scheme does not provide coverage for cyber terrorism incidents, despite mounting concern in both the public and private sectors of the dangers of targeted attacks.
Other notable exclusions from the scheme include nuclear attacks, acts of war, radiological damage and property owned by state or federal governments.