Space Liability Insurance John A. Horner Managing Director Marsh Space Projects John Horner Marsh Space Projects
Space Contracting Best Efforts Non-recourse Mutual Waivers and Hold Harmless between parties Single Third Party Liability Insurance policy covering all contractors
Topics for Discussion Space Liability Insurance Launch Site Premises Liability Launch Liability Reentry Liability On Orbit Liability Spacecraft Property Damage Liability Spacecraft Products Liability Space Liability Insurance market Space Liability Insurance - US Launch Liability regimes Space Liability - Human Space Flight
Launch Site Premises Liability Coastline Flight Path Insurance Launch Site Launch Pad GL Policy vs. Aviation Policy? Airport Premises vs. Launch Site? First Gate vs. Last Gate? Launch Liability vs. Launch Site Liability CSOSA vs. CSLA Impact Limit Line
Launch Liability Insurance Cross Waivers and Hold Harmless between parties Single TPL policy covering all contractors at every tier Indemnity excess of TPL insurance Covered launch activities Begin and end of covered launch activity varies Duration of coverage varies
Third Party Liability by Launch Vehicle Launcher TPL Limit TPL duration Sea Launch $300 million* 365 days Ariane 5 Euro 60 million** 365 days ULA Atlas V $261 million* 30 days ULA Delta IV $261 million* 30 days Proton/BreezeM $300-500 million 365 days Long March $300-500 million 365 days Soyuz $200 million 30 days+ GSLV $300-500 million*** 365 days PSLV $300-500 million*** 365 days START-1 $100 million 30 days+ Minautor Up to $100 million 30 days+ H2A $200 milion 365 days Space X $33 milion**** 30 days * with additional US Government $1.5 Billion Indemnity **Unlimited excess protection from French Government ***Anticipated limit, but no TPL bought to date ****Demo flight +30 days if successful or 365 days if unsuccessful Marsh Confidential
Space Liability Markets Space desk Global XL USAIG Allianz Starr Chartis Hiscox Torus Insurer Max Line 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 10.0% 10.0% 140.0% Marsh Confidential
Spacecraft Operation In Orbit Liability Insurance Satellite Manufacturers satellite operations during IOT Limited to $500 million per occurrence Several Nations require licensed or registered operators to provide in orbit third party liability insurance Limits and scope vary Great Britain Japan France Euro 60M US$ 100M Euro 60M Hong Kong / Singapore US$ 100M Generally operators only buy if required by regulation or contract Space Underwriters primary providers
Spacecraft Re-entry Insurance
Satellite Property Damage Liability (TT&C) Satellite Manufacturer or Third Party TT&C provider Liability for damage to a satellite caused by an occurrence Satellite is the property of others Satellite is in the care, custody or control of operator Coverage limited to $500 Million any one satellite
Spacecraft Products Liability Insurance Provided under Aviation Products Liability Policy Spacecraft Products amendments Definition of Spacecraft products Spacecraft Product PD sub-limits $250 million any one satellite, or $125 million per satellite for multi-satellite launch
2012 Perceived Market Gross Capacity - $1.0 billion limit Aerospace Liability (US Manufacturer/Operator) Maximum Line Torus Insurance 3.5% InterHannover 5.0% Munich Re 7.5% Partner Re 2.0% Swiss Re 7.5% Rest of World 24.5% Lloyd s 57.5% Lloyd s Amlin 10.0% Antares 2.0% Catlin 2.0% Chartis 10.0% Hiscox 5.0% Kiln 7.5% Faraday 4.0% Global Aerospace 10.0% QBE (Limit) 2.0% SCOR 10.0% AXA 2.0% LRA 4.0% French Markets 16.0% Allianz 10.0% Global Aerospace 10.0% Starr Aviation* 10.0% USAIG 20.0% XL Aerospace 10.0% USA Companies 60.0% Liability Limit US$1.0B Total Est. Maximum Capacity 2012: 158.0%
U.S. Space Liability Regimes $1.7 Billion $1.664 billion Commercial Insurance $x G o v e rn m e n t I n de m n ifi c a tio n Ex. $200 Million $1.5 Billion Government Indemnification $1.5 Billion Government Indemnification 0 Co n tr a c to r s I ns u ra n c e Li m it 0 Single Commercial Policy Ex. $164 million 0 Single Launch Liability Policy P L 8 5-804 N A S A A c t C S L A D u r a ti o n U n t il im p a c t w it h e a rth 3 0 d a ys a fte r la u n c h 3 0 d a y s a ft e r la u n c h S c o p e D e fin e d b y U H R C o v e r e d L a u n c h A c t iv it ie s L ic e n se d l a u n ch A c ti v iti e s C r o ss N o n e N A S A IS S a nd N o n -IS S C S L A C ro ss w a iv e r s w a i v e r s w a i v e rs G o v t H o l d h a rm le s s N A S c l a u se s C a p o f $ 1 00 M P r o p e r t y In d e m n ity fo r T h i r d U n l im i te d i nd e m n i ty e x c e ss of in su ra n c e $ 1.5 bi ll io n e x c e ss o f in su r a n c e $ 1.5 b ill io n e x c e ss o f i ns u ra n c e p a r ty L i a b ili ty U n d e r ly i n g In su r a n c e Y e s, ra n g e fro m $ 0 - $500 M Y e s, m a x. $ 5 0 0 M Y e s, m a x $ 5 0 0 m ill io n, h ig h e st M P L $ 2 6 5 m il lio n
U.S. Space Liability Regimes Commercial Space Operation Support Agreement (CSOSA) CSOSA activities begin at entry onto US Government facility Launch Site Launch Pad Launch Pad CSOSA stops at entry to launch site where CSLA Launch License requirements begin
U.S. Commercial Manned Space Flight US CSLAA regulations now address commercial space passenger flight Based on Informed Consent regime Post separation to re-entry hole Regulatory effort underway to limit space passenger liability Commercial vs. NASA Commercial Crew Program Suborbital operators not yet licensed
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