Companies who want to adequately protect their assets from the threat of terrorism are paying double the state taxes and levies imposed on commercial property insurance. And property owners who don’t arrange terrorism cover pay no levies at all.

That’s the assessment of Marsh Chairman John Richardson, who has pointed out that some companies have to pay two taxes to properly protect assets.

He says levies and taxes have risen to “unprecedented levels” this year and some companies are being taxed twice for insurance for the same assets – once on their property insurance premium and then on their terrorism insurance premium.

This year’s property insurance cover excluded the risk of terrorism, which has left companies needing to arrange a second policy to protect their property against terrorism.  “As both are deemed to be property policies, the Fire Services Levy is payable on both,” Mr Richardson said.

One major property owner’s fire services levy rose from $302,000 in 2001 to $2.2 million this year. Stamp duty charges for that client also jumped from $172,000 to $1.1 million during the same period.

Mr Richardson said terrorism cover at least should be exempt from charges as levies are already paid on assets through general property insurance.