Uncapped third-party liability can exceed the value of the business. Lenders need it capped and insured, and buyers price whatever is not.
Across the 3 regimes
ESA and EU
The 1972 Liability Convention makes the launching State liable. National laws pass liability to operators with caps and insurance. ESA contracts exclude consequential damages between the parties.
United States
Insurance for maximum probable loss, capped at $500m third party and $100m government property. Government may pay claims above that up to $1.5bn plus inflation, for licences applied for by 30 Sep 2028.
UK and France
UK: operator indemnifies the government, up to the limit in its licence; strict liability for damage on the ground; insurance set by regulations and licence. France: operator liability capped, with a State guarantee above the cap.
The rest of this page sets out the 8 quoted provisions behind these cells, what is usually negotiated, and what lenders and buyers ask. It is free with a work email, along with the full tools, guides and register downloads.
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Related
- Tool: Satellite finance clause library
- Guide: Insurance in satellite financings
- Checklist: Launch services agreement checklist
- Checklist: Satellite licensing and transfer checklist
General information on public law and standard terms as at 28 Oct 2026, not legal advice on any contract or transaction. Quoted wording is checked against the official text linked to it.