51 U.S.C. § 50914 — Liability insurance and financial responsibility requirements

(a) General Requirements.
(1) When a license is issued or transferred, the licensee or transferee must get liability insurance or show financial responsibility, enough to cover the maximum probable loss from: (A) third-party claims for death, injury, or property damage or loss caused by the licensed activity; and (B) U.S. Government claims against someone for damage or loss to government property caused by the licensed activity.
(2) The Secretary of Transportation sets these required amounts, after consulting the NASA Administrator^*, the Secretary of the Air Force, and other relevant agency heads.
(3) For all claims tied to one launch or reentry, a licensee or transferee never has to carry more than: (A)(i) $500,000,000 for third-party claims, or (ii) $100,000,000 for government property claims; or (B) the highest liability insurance available on the world market at a reasonable cost, if that's less than (A)(i) or (ii).
(4) The insurance or financial responsibility must protect, at no cost to the government: (A) the government; (B) government agencies, personnel, contractors, and subcontractors; (C) the licensee's or transferee's contractors, subcontractors, and customers; (D) the customer's contractors and subcontractors; and (E) space flight participants — to the extent of their potential liability from involvement in launch or reentry services.
(5) Part (4)(E) — covering space flight participants — stops applying on September 30, 2028.

(b) Reciprocal Waiver of Claims.
(1)(A) Every license must require the licensee or transferee to sign a reciprocal waiver of claims with everyone involved in the launch or reentry services. Under this waiver, each party agrees to be responsible for injury, death, or property damage or loss it or its own employees suffer from the licensed activity.
(B) "Applicable parties" here means: (i) the licensee's or transferee's contractors, subcontractors, and customers; (ii) the customer's contractors and subcontractors; and (iii) space flight participants.
(C) Part (B)(iii) — covering space flight participants — stops applying on September 30, 2028.
(2) The Secretary of Transportation must also sign a reciprocal waiver — for the government, government agencies involved in launch or reentry services, and their contractors and subcontractors — with the licensee or transferee, contractors, subcontractors, crew, space flight participants, and customers, and the customers' contractors and subcontractors. Under this waiver, each party agrees to be responsible for property damage or loss it suffers, or injury, death, or property loss its own employees or space flight participants suffer, from the licensed activity. This waiver only applies once claims exceed the insurance or financial responsibility amount required under (a)(1)(B). After consulting the Administrator and the Secretary of the Air Force, the Secretary of Transportation may waive the government's and its agencies' right to recover damages to government property, to the extent insurance isn't available because of a policy exclusion the Secretary decides is normal for that type of insurance.

(c) Determination of Maximum Probable Losses. The Secretary of Transportation must determine the maximum probable losses under (a)(1)(A) and (B) for a licensed activity within 90 days after a licensee or transferee asks for a determination and submits all the information the Secretary needs. The Secretary must update the determination as new information warrants.

(d) Annual Report.
(1) By November 15 each year, the Secretary of Transportation must send the Senate Commerce Committee and House Science Committee a report on current determinations made under (c) for all issued licenses, and the reasons behind them.
(2) By May 15 each year, the Secretary of Transportation must review the amounts set in (a)(3)(A) and send Congress a report proposing adjustments to match changed liability expectations and insurance availability on the world market. The proposed adjustment takes effect 30 days after the report is submitted.

(e) Launches or Reentries Involving Government Facilities and Personnel. The Secretary of Transportation must set requirements, consistent with this chapter, for proof of financial responsibility and other protections needed to shield the government and its agencies and personnel from liability for death, injury, or property damage or loss from a launch, site operation, or reentry that involves government facilities or personnel. The Secretary can't relieve the government of liability under this subsection for death, injury, or property damage or loss caused by the government's or its agents' willful misconduct.

(f) Collection and Crediting Payments. A department, agency, or instrumentality head must collect any payment owed for damage or loss to government property under its control, caused by an activity under a licensed launch or reentry. That payment is credited to that department's, agency's, or instrumentality's current appropriate fund or account.

(g) Federal Jurisdiction. Any third-party or space flight participant claim for death, injury, or property damage or loss from a licensed activity falls under exclusive federal court jurisdiction.