To identify the territory of regulation and tax of a livestock risk consider:
- The location of the insured animals; and
- The location of the insured’s residence(s) or business establishment(s).
Livestock insurance covers mortality to animals due to accident or disease.
Many countries’ laws treat animals as moveable property and the risk location is where the animal is normally situated.
The main exception to this rule is in the EEA where the regulatory risk location for moveable property is the territory where the insured is resident but the tax risk location remains the location of the moveable property.
If the contract covers moveable property situated in more than one territory there may be multiple risk locations.
Where the moveable property’s location is uncertain or variable, the risk location is the territory in which the insured’s residence or business establishment is located.
Please note: In some territories, e.g. Canada and the US, the location of the insured’s residence or business establishment creates a risk location irrespective of the physical location of the insured property. Consequently, if the insured property is in a different territory from the insured’s residence or business establishment, there are two territories for regulation and tax.