---
title: "Check a commercial property policy against the terrorism reinsurance scheme"
url: "https://ailawframework.com/practice/insurance-law/check-a-commercial-property-policy-against-the-terrorism-reinsurance-sch"
type: "task"
site: "AI Law Framework"
id: "A22-MA20261022-11"
practice_area: "Insurance Law"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Check a commercial property policy against the terrorism reinsurance scheme

> From the schedule, record whether the property is a commercial or industrial building, a mixed-use building and any stated share of floor space used for commercial purposes, or a building with a sum insured of at least…

Canonical page: https://ailawframework.com/practice/insurance-law/check-a-commercial-property-policy-against-the-terrorism-reinsurance-sch  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Insurance Law](https://ailawframework.com/practice/insurance-law.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the schedule, record whether the property is a commercial or industrial building, a mixed-use building and any stated share of floor space used for commercial purposes, or a building with a sum insured of at least $50 million whether used for commercial or other purposes. Note fixtures, contents, associated business interruption, commercially owned infrastructure, a construction-policy site, and a farm that holds business-interruption insurance. Note a terrorism exclusion and any nuclear wording. Do not tell a policyholder that an ARPC reinsurance rate is the premium they pay. Do not treat the pool capacity figure dated January 2022 as the current figure. |
| What the lawyer must review | Decide whether the contract is an eligible insurance contract and whether a terrorism exclusion is overridden. The Australian Reinsurance Pool Corporation fact sheet says the terrorism pool reinsures commercial property and associated business interruption from a declared terrorist incident, that insurers may elect to buy that reinsurance, and that holders of eligible insurance contracts will be covered if an incident is declared, with insurers meeting claims in accordance with the other policy terms. The Terrorism and Cyclone Insurance Act 2003 overrides terrorism exclusion clauses in eligible insurance contracts. The Minister must officially announce a declared terrorist incident before the Act's provisions are triggered. Confirm eligibility in the Act. On the sheet, an eligible terrorism loss does not include loss or liability from the hazardous properties of nuclear fuel, material or waste, and the pool also covers declared acts described as chemical, biological, polluting, contaminating, pathogenic, poisoning, or words of similar effect. The sheet's rates of 2.6 per cent, 5.3 per cent and 16 per cent are reinsurance premiums ARPC charges, by tier, under Ministerial Direction. |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Source-by-source verification**

Trace relied-on content to independent sources and check for relevant material the output has missed.

- What the AI does: From the schedule, record whether the property is a commercial or industrial building, a mixed-use building and any stated share of floor space used for commercial purposes, or a building with a sum insured of at least $50 million whether used for commercial or other purposes. Note fixtures, contents, associated business interruption, commercially owned infrastructure, a construction-policy site, and a farm that holds business-interruption insurance. Note a terrorism exclusion and any nuclear wording. Do not tell a policyholder that an ARPC reinsurance rate is the premium they pay. Do not treat the pool capacity figure dated January 2022 as the current figure.
- What the lawyer does: Decide whether the contract is an eligible insurance contract and whether a terrorism exclusion is overridden. The Australian Reinsurance Pool Corporation fact sheet says the terrorism pool reinsures commercial property and associated business interruption from a declared terrorist incident, that insurers may elect to buy that reinsurance, and that holders of eligible insurance contracts will be covered if an incident is declared, with insurers meeting claims in accordance with the other policy terms. The Terrorism and Cyclone Insurance Act 2003 overrides terrorism exclusion clauses in eligible insurance contracts. The Minister must officially announce a declared terrorist incident before the Act's provisions are triggered. Confirm eligibility in the Act. On the sheet, an eligible terrorism loss does not include loss or liability from the hazardous properties of nuclear fuel, material or waste, and the pool also covers declared acts described as chemical, biological, polluting, contaminating, pathogenic, poisoning, or words of similar effect. The sheet's rates of 2.6 per cent, 5.3 per cent and 16 per cent are reinsurance premiums ARPC charges, by tier, under Ministerial Direction.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. Use the schedule's property class and sum insured. Do not infer a commercial floor-space share that the schedule does not state.
2. Keep ARPC's reinsurance rates separate from the premium payable by the policyholder.
3. Record that cover under the scheme, on the fact sheet, waits on a ministerial declaration.
4. The lawyer confirms eligibility against the Act. The fact sheet is not a substitute for that reading.

## Notes

- These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.

## Sources

- [ARPC terrorism pool fact sheet](https://arpc.gov.au/resources/terrorism-fact-sheet/) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/insurance-law/check-a-commercial-property-policy-against-the-terrorism-reinsurance-sch/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*