WSRF 2012, Dubai

Space Liability Insurance

John Horner

Marsh Space Projects John A. Horner

Managing Director

Marsh Space Projects

WSRF 2012, Dubai

Space Contracting

Best Efforts

Non-recourse

Mutual Waivers and Hold Harmless between parties

Single Third Party Liability Insurance policy covering all contractors

WSRF 2012, Dubai

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

WSRF 2012, Dubai

Launch Site Premises Liability Insurance

Launch Pad

Launch Site

Impact Limit Line

Flight Path

Coastline

•GL Policy vs. Aviation Policy?

•Airport Premises vs. Launch Site?

•First Gate vs. Last Gate?

•Launch Liability vs. Launch Site Liability

•CSOSA vs. CSLA

Launch Pad

Launch Site

Impact Limit Line

Flight Path

Coastline

•GL Policy vs. Aviation Policy?

•Airport Premises vs. Launch Site?

•First Gate vs. Last Gate?

•Launch Liability vs. Launch Site Liability

•CSOSA vs. CSLA

WSRF 2012, Dubai

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

WSRF 2012, Dubai

Third Party Liability by Launch Vehicle

* 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

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

WSRF 2012, Dubai

Space Liability Markets Space desk

Marsh Confidential

10.0%Hiscox

140.0%

10.0%Torus

20.0%Chartis

20.0%Starr

20.0%Allianz

20.0%USAIG

20.0%XL

20.0%Global

Max LineInsurer

10.0%Hiscox

140.0%

10.0%Torus

20.0%Chartis

20.0%Starr

20.0%Allianz

20.0%USAIG

20.0%XL

20.0%Global

Max LineInsurer

WSRF 2012, Dubai

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 Euro 60M Japan US$ 100M France Euro 60M Hong Kong / Singapore US$ 100M

• Generally operators only buy if required by regulation or contract • Space Underwriters primary providers

WSRF 2012, Dubai

Spacecraft Re-entry Insurance

WSRF 2012, Dubai

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

WSRF 2012, Dubai

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

WSRF 2012, Dubai

2012 Perceived Market Gross Capacity - $1.0 billion limit Aerospace Liability (US Manufacturer/Operator) Maximum Line

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%

USA Companies

60.0% Allianz 10.0%

Global Aerospace 10.0%

Starr Aviation* 10.0%

USAIG 20.0%

XL Aerospace 10.0%

French Markets

16.0%

Rest of World

24.5%

SCOR 10.0%

AXA 2.0%

LRA 4.0%

Torus Insurance 3.5%

InterHannover 5.0%

Munich Re 7.5%

Partner Re 2.0%

Swiss Re 7.5%

Liability Limit US$1.0B

Total Est. Maximum Capacity 2012: 158.0%

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%

USA Companies

60.0% Allianz 10.0%

Global Aerospace 10.0%

Starr Aviation* 10.0%

USAIG 20.0%

XL Aerospace 10.0%

French Markets

16.0%

Rest of World

24.5%

SCOR 10.0%

AXA 2.0%

LRA 4.0%

Torus Insurance 3.5%

InterHannover 5.0%

Munich Re 7.5%

Partner Re 2.0%

Swiss Re 7.5%

Liability Limit US$1.0B

Total Est. Maximum Capacity 2012: 158.0%

WSRF 2012, Dubai

U.S. Space Liability Regimes

Single Launch

Liability Policy

$1.5 Billion

Government

Indemnification

Commercial

Insurance

0

Ex. $164 million

$1.664 billion

Single Launch

Liability Policy

$1.5 Billion

Government

Indemnification

Commercial

Insurance

0

Ex. $164 million

$1.664 billion

Single Launch

Liability Policy

$1.5 Billion

Government

Indemnification

Commercial

Insurance

0

Ex. $164 million

$1.664 billion

Single Commercial

Policy

$1.5 Billion

GovernmentIndemnification

0

Ex. $200 Million

$1.7 Billion

Single Commercial

Policy

$1.5 Billion

GovernmentIndemnification

0

Ex. $200 Million

$1.7 Billion

Single Commercial

Policy

$1.5 Billion

GovernmentIndemnification

0

Ex. $200 Million

$1.7 Billion

Co n tr a c to r’s

I ns u ra n c e Li m it

G o v e rn m e n t

I n de m n ifi c a tio n

0

$ x

Co n tr a c to r’s

I ns u ra n c e Li m it

G o v e rn m e n t

I n de m n ifi c a tio n

0

$ x

Co n tr a c to r’s

I ns u ra n c e Li m it

G o v e rn m e n t

I n de m n ifi c a tio n

0

$ x

P L 8 5 -8 0 4 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

w a i v e r s

N o n e N A S A IS S a nd N o n -IS S

w a i v e rs

C S L A C ro s s w a iv e r s

G o v t

P r o p e r t y

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

In d e m n ity

fo r T h i r d

p a r ty

L i a b ili ty

U n l im i te d i nd e m n i ty

e x c e s s of in su ra n c e

$ 1 .5 bi ll io n e x c e s s o f

in su r a n c e

$ 1 .5 b ill io n e x c e s s o f

i ns u ra n c e

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 - $ 5 0 0 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 s t M P L $ 2 6 5 m il lio n

P L 8 5 -8 0 4 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

w a i v e r s

N o n e N A S A IS S a nd N o n -IS S

w a i v e rs

C S L A C ro s s w a iv e r s

G o v t

P r o p e r t y

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

In d e m n ity

fo r T h i r d

p a r ty

L i a b ili ty

U n l im i te d i nd e m n i ty

e x c e s s of in su ra n c e

$ 1 .5 bi ll io n e x c e s s o f

in su r a n c e

$ 1 .5 b ill io n e x c e s s o f

i ns u ra n c e

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 - $ 5 0 0 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 s t M P L $ 2 6 5 m il lio n

Single Launch

Liability Policy

$1.5 Billion

Government

Indemnification

Commercial

Insurance

0

Ex. $164 million

$1.664 billion

Single Launch

Liability Policy

$1.5 Billion

Government

Indemnification

Commercial

Insurance

0

Ex. $164 million

$1.664 billion

Single Launch

Liability Policy

$1.5 Billion

Government

Indemnification

Commercial

Insurance

0

Ex. $164 million

$1.664 billion

Single Commercial

Policy

$1.5 Billion

GovernmentIndemnification

0

Ex. $200 Million

$1.7 Billion

Single Commercial

Policy

$1.5 Billion

GovernmentIndemnification

0

Ex. $200 Million

$1.7 Billion

Single Commercial

Policy

$1.5 Billion

GovernmentIndemnification

0

Ex. $200 Million

$1.7 Billion

Co n tr a c to r’s

I ns u ra n c e Li m it

G o v e rn m e n t

I n de m n ifi c a tio n

0

$ x

Co n tr a c to r’s

I ns u ra n c e Li m it

G o v e rn m e n t

I n de m n ifi c a tio n

0

$ x

Co n tr a c to r’s

I ns u ra n c e Li m it

G o v e rn m e n t

I n de m n ifi c a tio n

0

$ x

P L 8 5 -8 0 4 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

w a i v e r s

N o n e N A S A IS S a nd N o n -IS S

w a i v e rs

C S L A C ro s s w a iv e r s

G o v t

P r o p e r t y

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

In d e m n ity

fo r T h i r d

p a r ty

L i a b ili ty

U n l im i te d i nd e m n i ty

e x c e s s of in su ra n c e

$ 1 .5 bi ll io n e x c e s s o f

in su r a n c e

$ 1 .5 b ill io n e x c e s s o f

i ns u ra n c e

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 - $ 5 0 0 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 s t M P L $ 2 6 5 m il lio n

P L 8 5 -8 0 4 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

w a i v e r s

N o n e N A S A IS S a nd N o n -IS S

w a i v e rs

C S L A C ro s s w a iv e r s

G o v t

P r o p e r t y

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

In d e m n ity

fo r T h i r d

p a r ty

L i a b ili ty

U n l im i te d i nd e m n i ty

e x c e s s of in su ra n c e

$ 1 .5 bi ll io n e x c e s s o f

in su r a n c e

$ 1 .5 b ill io n e x c e s s o f

i ns u ra n c e

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 - $ 5 0 0 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 s t M P L $ 2 6 5 m il lio n

WSRF 2012, Dubai

U.S. Space Liability Regimes Commercial Space Operation Support Agreement (CSOSA)

Launch Pad

CSOSA stops at entry to launch

site where CSLA Launch License

requirements begin

Launch Pad

Launch Site

CSOSA activities begin at entry

onto US Government facility

Launch Pad

Launch Site

CSOSA activities begin at entry

onto US Government facility

Launch Pad

CSOSA stops at entry to launch

site where CSLA Launch License

requirements begin

Launch Pad

Launch Site

CSOSA activities begin at entry

onto US Government facility

Launch Pad

Launch Site

CSOSA activities begin at entry

onto US Government facility

WSRF 2012, Dubai

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

WSRF 2012, Dubai

Thank you.