Satellite crash in your yard? Who pays?
With the recent inevitable, but unwelcome re-entry of NASA’s Upper Atmosphere Research Satellite, (UARS) into earth’s orbit—which landed in the middle of the Indian Ocean in the early morning hours of September 25—it prompted many people to ask, “Who is responsible for damages should any occur?”
A good question.
Most people with insurance would have to check with their provider to see if they can file a claim under their home, commercial property or comprehensive auto policies.
But what if you don’t have insurance or are seriously injured, or you are an insurer wanting to recoup costs? This is where a 50 year old treaty called The 1972 Convention on International Liability for Damage Caused by Space Objects, comes into play. Adopted by the General Assembly of the United Nations, and signed by all participating nations, the treaty states that each nation is “absolutely liable to pay compensation for damage caused by its space object on the surface of the Earth or to aircraft in flight.”
The convention states that insures have a year to recover damages from any government that has launched a satellite that has decided to come back to earth. To date, the treaty stipulations have never been put to the test.
Satellites owned by private companies are a different matter. Space coverage is a small, yet growing niche in the insurance market. It’s also expensive. Satellites on average are valued at around $250 Million, with premiums being charged at 10 to 15 percent of the value. However, despite the costs, satellite operators like DirectTV, Sirius, and Google Inc. are insured for a variety of damages including disruption while in orbit. Space policies cover up to roughly $500 Million.
Thanks to Ernie Marven whose comment inspired this story.
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