Property - Cover

Extent of cover


This section covers damage to inner-Budget agency property from loss or damage to property and/or machinery breakdown from sudden, unexpected or unforeseen circumstances, as well as any consequential costs due to business interruption arising from the damage. It also covers loss of or damage to property caused by theft, theft of monies, and loss of or damage to goods in transit.


Cover is provided for:
  • loss of (including theft) or damage to (excluding normal wear and tear) all property (including money) an agency owns or has an interest in or for which the agency is responsible ("property and business interruption"). This includes:
    • buildings and contents; 
    • any built structure or improvement to land, for example landscaping or gardens;
    • building fit-out, stock or mobile plant,
    • any consequential additional expenditure required to maintain service at pre-incident levels (but not normal operational expenses);
  • subject to a police investigation, the fraudulent misappropriation of goods or monies by officials or employees ("fraud/fidelity");
  • damage to machinery (eg lifts, boilers, medical diagnostic equipment, computers and servers), and any consequential loss of records, resulting from a mechanical or electronic breakdown ("machinery breakdown");
  • loss of or damage to a marine vessel and its equipment (including its trailer if that trailer is declared for the purpose of the Fund) ("marine hull"). If the vessel is normally carried on a trailer, cover includes periods when the vessel is being towed or garaged. "Marine hull" cover is purchased from the private sector and coverage includes third party property damage and personal injury for which the agency is liable. Please note that only those vessels that are specifically declared to the private insurer are insured. If a vessel is not declared it is not insured;
  • loss of or damage to a government vehicle and any associated third party property damage for which the participating entity is legally responsible ("motor vehicle").

Where an indemnity has been provided by the Panel established to consider an application from a Public Officer for an indemnity and/or legal assistance ('Public Officer' is defined in Employment Direction No. 16 - Indemnity and Legal Assistance), the Fund will cover employees and officers in relation to third party property claims incurred whilst using a government vehicle.

"Government vehicle" includes:

      • vehicles leased through the Government's Fleet Manager; and
      • any other motor vehicle (eg light commercial motor vehicles, motor bikes, trailers, etc) owned and operated by an agency;

Third party personal injury costs are insured through the Motor Accidents Insurance Board.

Note: Treasury must be advised of any significant (+10 per cent) change to property assets held by the agency to ensure that contributions are adjusted to properly reflect the risk exposure of the agency. In addition, Treasury must be advised of any property acquisition with a replacement value of $20 000 000 and above for the purpose of insuring the asset in the event of a catastrophe.      ​


Cover is not provided for:
  • normal wear and tear, including rust or corrosion;
  • motor vehicle breakdowns, either mechanical or electronic;
  • damage to or loss of employee or volunteer property (other than employee household goods in transit), including loss or damage to private motor vehicles or vessels. If employees or volunteers are required to use private motor vehicles or vessels as part of their employment or assistance to government, it is their responsibility to have the vehicle / vessel comprehensively insured (see Ministerial Direction No. 1.1 2002 - Administration); or
  • work done under a capital works contract. Building contractors are required to purchase Public Liability Insurance and Insurance of the Works through special policies organised by the Department of Treasury and Finance with the Fund Administration Agent. Building consultants wishing to do work for government agencies are required to maintain their own public liability and professional indemnity insurance. See the Purchasing website for further information.

Extent of Cover

Motor Vehicles


Subject to nominated excesses, cover is provided for expenses relative to the cost of dealing with the property. For clarity this includes:
  • the replacement, repair and/or reinstatement of the property;
  • where appropriate, any temporary repairs required to render premises safe or prevent further damage; and
  • any claim investigation and/or legal fees provided that the claim investigation fees are considered reasonable by the Fund Administration Agent and the legal services have been provided or sanctioned by the Office of the Solicitor-General.

Cover is limited to an asset's replacement value as declared by agencies in Treasury's biennial review of agency assets. See Important Information for further information on the declaration of agency assets.

In circumstances where destroyed premises are not to be rebuilt, payment outside of clean up costs is not automatic and will be determined on a case-by-case basis by Treasury following a submission by the participating entity.

Cover for consequential "business interruption" costs is limited to any increased working costs incurred by the agency to maintain services at pre-incident levels.

Cover for special items (curios, antiques and works of art) is based on the cost to replace, repair or restore the article to the condition that it was in immediately prior to the insured event, or the lesser of two valuations provided by independent, qualified valuers.

Motor Vehicles

Subject to nominated excesses, motor vehicle cover includes:
  • the cost to repair a vehicle - provided that the repair cost does not exceed the market value of the vehicle;
    If the cost to repair a vehicle is more than its market value, the Fund will pay its market value in settlement (unless the vehicle is less than 12 months old, in which case the Fund will pay the full replacement value).
  • third party property damage for which the agency is legally liable;
  • reasonable costs incurred in removing the vehicle to an approved repairer or a place of safety;
  • costs incurred to clean up or remove debris resulting from goods falling or leaking from an agency vehicle;
  • most fixed vehicle accessories supplied at the time of purchase. Subsequently fitted, fixed accessories/modifications are not automatically included under the Fund's motor vehicle cover and advice in relation to this should be sought from the Fund on a case-by-case basis. Non-fixed property and equipment would be a separate property claim; and
  • any claim investigation and/or legal fees provided that the claim investigation fees are considered reasonable by the Fund Administration Agent and the legal services have been provided or sanctioned by the Office of the Solicitor-General.
    • Note that, in accordance with the Department of Premier and Cabinet's Policy and Guidelines for the Allocation and use of Vehicles within the State Service, the Fund will provide motor vehicle cover regardless of the circumstances. However, agencies should consider recovering claim costs from an employee if that employee was not acting in 'good faith' (based on advice from the Fund Administration Agent and Crown Law) at the time of the incident (eg whilst driving under the influence of alcohol or certain other drugs).

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