Products Liability Insurance

Transcription

1 0 Products Liability Insurance Akiko Hama Underwriter, Global Aerospace

2 Space Products Liability Liability for property damage & bodily injury caused by a defective spacecraft product

3 Contractual parties involved in the space industry Customers Satellite Prime Contractor Operator Insurers Launch Services Provider Sub tier 1 Sub tier 1 Launch Vehicle Prime Contractor Sub tier 2 Sub tier 2 Sub tier 1 Sub tier 3 Sub tier 3 Sub tier 2

4 Hold Harmless / Waivers of Recourse Agreements Customers Operator Insurers Satellite Prime Contractor Sub tier 1 Sub tier 2 Sub tier 3 Sub tier 1 Sub tier 2 Sub tier 3 Launch Services Provider Launch Vehicle Prime Contractor Sub tier 1 Sub tier 2

5 How does spacecraft products liability policy fit in with other space policies? Contractually, there should be no interparty claims Contingent Cover Gross negligence/wilful misconduct may be ecluded from waivers/hold harmless agreements Claims may arise from third parties Contractually, each entity is liable for their own part However, indemnities may be in place

6 Space-Related Insurance Policies Operator Launch and in-orbit hull policy In-orbit liability policy Launch Services Provider Customers Launch liability policy Loss of revenue policy Satellite/ Launch Vehicle Manufacturers Products liability policy Subcomponent Manufacturers Products liability policy

7 Aviation Products Liability Insurance Coverage: To pay on behalf of the Insured all sums which the Insured shall become legally liable to pay as damages for Bodily Injury or Property Damage caused by an Occurrence arising out of the Products Hazard. (AVN 98)

8 Aviation Products Liability Insurance Definition of Aircraft Product includes spacecraft products, however in standard aviation product liability policies, coverage for property damage to spacecraft is ecluded after the spacecraft has been delivered to the launch site! Two options: Space Eclusion Endorsement whereby all liability caused by any spacecraft product is ecluded Spacecraft Coverage Endorsement

9 Space Coverage Etension Provided by means of Space Coverage Endorsement (AVN98) Spacecraft Products sub-limits USD250M any one satellite USD125M per satellite for multiple satellites on the same launch vehicle (during launch phase only) Full policy limit applies for Property Damage to third party satellites Applicable only for satellites within their operational life Property Damage to Launch Vehicle or Aviation Product forming part of such Launch Vehicle is ecluded

10 How do product liability insurers view a space product risk? Revenues and units in service Policy Limits Losses Legal/ Contractual language RISK Production Risk Management/ WSRF Quality 2012, Assurance Dubai

11 10 NEW SPACECRAFT APPLICATIONS

12 ANSPs and airports already buy aviation liability insurance Manufacturers of air navigation/air traffic management equipment also buy aviation product liability insurance Air Navigation

13 Air Navigation Increasing use of space systems in air navigation and air traffic management ACARS (SBAS) Space Based Augmentation System Iris new air-ground communication system

14 Air Navigation Different approaches to product liability insurance procurement e.g. SBAS WAAS Each operator who provides WAAS services through their satellite is required to buy product liability policy EGNOS Procurement of single policy over all EGNOS operation is being considered

15 Space Tourism US CSLAA regime Informed consent Space passenger liability limits?

16 Voting question 1 What is the approimate average passenger liability payments seen in aviation accidents in the US? USD 50,000 USD 500,000 USD 5,000,000 USD 50,000,000

17 Aviation Analogy Comparable to an eecutive jet accident Award levels, especially in the US for passenger liability Currently, on average, about USD5M High net worth individuals nearer USD20M-30M US CSLAA does not address products liability issues Importance of good contractual language Perhaps offload any product liability claims to the operator (manufacturer to be indemnified by the operator)

18 Space Tourism

19 Thank you.