Out of this world insurance – proposed changes to orbital liability and insurance
In June 2022, the government published its response to space insurance issues such as in-orbit operator liability limits as well as considering alternatives to third-party liability insurance. The Government has been working with various organisations and stakeholders and is expected to publish further proposals imminently.
The proposals are expected to include:
Variable liability limits
Currently, the liability limit is fixed at EUR 60 million. The Government has proposed moving towards a variable limit, with risks being assessed against various pre-defined criteria.
Missions would then be placed into one of a number of liability. The maximum liability band would have a recommended value of GBP 50 million.
The government is also considering expanding the circumstances in which a waiver can be used. Waivers are currently only applied to the lowest-risk satellites operating below the International Space Station.
Currency changes
The Government also intends to set limits in Pounds Sterling rather than Euros, with a set mechanism for converting from one currency to the other.
Legislative certainty
Under section 12(2) Space Industry Act 2018, an operator may chose to limit its liability to indemnify the Government for claims brought against it by third parties. One proposal is to amend the legislation to make the liability limit mandatory and not optional. This is intended to give comfort to licensees.
Space mutual?
The proposals also included the potential for the establishment of a mutual as an alternative to traditional insurance. The rationale for such an approach would be to make insurance cheaper and easier to access, in particular for small satellite operators. The Government is also looking at the feasibility of a single policy to cover all licensees, with the potential to create a Space Bond in the longer term, with compulsory investment into the bond for all licensees.
Contents
- The Word, January 2023
- (Another) case on the importance of clear drafting
- California bomb cyclone set to ‘to exceed $1bn’ in storm damage costs
- Systemic Event Risks: the need for a customer-centric approach to policy drafting
- The rising number of cyber-attacks
- The continued threat of piracy in Southeast Asian waters
Contact
Tim Johnson
Partner
tim.johnson@brownejacobson.com
+44 (0)115 976 6557
You may be interested in...
Legal Update
Navigating the future: A consultative approach to local government funding reform
Legal Update - Public matters newsletter
Public matters: December 2024
Legal Update
Insurance complaints surge continues
Legal Update
Walking the fine line: The statutory duty of candour and insurance
Legal Update
FCA launches consultation on broker remuneration for multi-occupancy buildings insurance
Legal Update
AI is creating fraudulent claims
Legal Update
Shoplifting epidemic by organised criminal gangs: The impact for insurers
Legal Update
Death and disgrace policies: What can insurers learn about the allegations against Gregg Wallace?
Online Event
Pupillage open evening
Published Article
Navigating the future of local government finance: Strategies for maximising central government funding
Press Release
Comment on English devolution white paper
Legal Update
Taking account of a supplier’s approach to payment in major contracts procurement (PPN015 and PPN018): What is new?
Legal Update
Embedding social value in procurement
Legal Update
Martyn’s Law: Paving the way for enhanced security measures across UK venues and events
Legal Update
Employment Rights Bill: Will it cost more to outsource public services and back-office functions?
Legal Update
A call to councils: Implementing effective tree management to prevent future tragedies
Legal Update
Navigating workplace sexual harassment laws during the festive season
Press Release
Comments on new MHRA clinical trial regulations
Press Release
Comments on the National Planning Policy Framework reform
Opinion
Revolutionising the Workforce: Impact of Get Britain Working White Paper
Legal Update
The latest take on vicarious liability for kinship / connected person foster care
Legal Update
Supreme Court shines a light on collective agreements
Press Release
Browne Jacobson advises Celtic Freeport as it opens for business
Press Release
Comments on the Prime Minister’s ‘Plan for Change’ speech
Legal Update - London Market Quarterly
London Market Quarterly December 2024: An eye on what the market needs to know
Online Event
Supporting universities to meet their financial duties
Press Release
Browne Jacobson advises Oxford City Council on Barton Park affordable housing deal
Legal Update - Public matters newsletter
Public matters: November 2024
Published Article
Johnson et al v FirstRand Bank: Judgment sends warning across financial services intermediation
Legal Update
The housing benefit subsidy deficit: Strategies for funding temporary accommodation
Legal Update
What’s in a name: ESG principles and UK local authorities
Opinion
Balancing employer flexibility and employee rights
Legal Update
How the Data (Use and Access) Bill will impact the public sector
Legal Update
The ‘grate’ cheese robbery: Implications for insurance professionals
Legal Update
Environmental crime and the impact for insurers
Legal Update
Carbon fraud prompts insurance response
Legal Update
What might a Trump victory mean for the UK insurance industry?
Legal Update
Post Office scandal: Lessons for underwriters
Legal Update
Weather protection parametric insurance: A sign of things to come?
