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ARTICLE · 23 FEBRUARY 2015

Insurance Cover For Terrorism-Related Losses

Clyde & Co
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The Australian Government has declared the siege at the Lindt Café in Martin Place, Sydney, a "terrorist incident" for the purpose of the Terrorism Insurance Act 2003 (Cth).

AustraliaInsurance
Jenni Priestley
Jenni Priestley
Leah Hewish
Leah Hewish
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The Australian Government has declared the siege at the Lindt Café in Martin Place, Sydney, a "terrorist incident" for the purpose of the Terrorism Insurance Act 2003 (Cth). This has the effect of nullifying terrorism exclusions in eligible property, public liability and business interruption insurance contracts.

In December 2014, an armed man held hostages captive at the Lindt Café in Martin Place, Sydney, for 16 hours. The siege, in the centre of the CBD, forced the evacuation or lockdown of a number of neighbouring buildings, some remaining closed for days after the event. This incident has brought the operation of the Terrorism Insurance Act 2003 (Cth) (the Act) into focus as business owners' deal with losses caused by the siege.

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