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6 U.S.C. § 443Risk management

submitted 24 years ago by Pub. L. 107-296 to r/title-6-DOMESTIC-SECURITY · 439 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law makes sellers of approved anti-terrorism technology carry liability insurance. It caps how much insurance they must buy and limits their total liability to that amount. Sellers and their business partners must also waive claims against each other.

(a) In general (1) If you sell or provide an approved "qualified anti-terrorism technology" to a government customer -- federal or non-federal -- you're called the "Seller." You must buy liability insurance. The type and amount are set by the Secretary. This insurance has to cover claims from other people ("third-party claims") arising from an act of terrorism, when your technology was used to defend against, respond to, or recover from that attack. (2) You don't have to buy more insurance than you can reasonably get from private insurers on the world market -- at a price that won't unfairly raise what you charge for your anti-terrorism technology. That's your maximum required amount, even if a single attack could cause bigger losses. (3) This insurance must also protect other people connected to the sale, not just you: (A) Your own contractors, subcontractors, suppliers, vendors, and customers. (B) Your customer's contractors, subcontractors, suppliers, and vendors. It covers them only for their potential liability from making, approving, selling, using, or operating the technology during a terrorism defense or response. (4) The insurance must cover third-party claims connected to selling or using the anti-terrorism technology. (b) Reciprocal waiver of claims You (the Seller) must sign an agreement with your contractors, subcontractors, suppliers, vendors, customers, and your customers' contractors and subcontractors. In it, each side agrees to cover its own losses -- including lost business -- and its own employees' losses, if those losses come from a terrorist act where the technology was used in defense or response. (c) Extent of liability No matter what other law says, if you (the Seller) get sued over an act of terrorism where your approved technology was used in defense or response, your total liability -- whether for compensatory damages, punitive damages, contribution, or indemnity -- can never be more than the amount of liability insurance you're required to carry under this section.
the actual law source: uscode.house.gov ↗public domain
(a) In general
(1) Liability insurance required

Any person or entity that sells or otherwise provides a qualified anti-terrorism technology to Federal and non-Federal Government customers (“Seller”) shall obtain liability insurance of such types and in such amounts as shall be required in accordance with this section and certified by the Secretary to satisfy otherwise compensable third-party claims arising out of, relating to, or resulting from an act of terrorism when qualified anti-terrorism technologies have been deployed in defense against or response or recovery from such act.

(2) Maximum amount

For the total claims related to 1 such act of terrorism, the Seller is not required to obtain liability insurance of more than the maximum amount of liability insurance reasonably available from private sources on the world market at prices and terms that will not unreasonably distort the sales price of Seller’s anti-terrorism technologies.

(3) Scope of coverage

Liability insurance obtained pursuant to this subsection shall, in addition to the Seller, protect the following, to the extent of their potential liability for involvement in the manufacture, qualification, sale, use, or operation of qualified anti-terrorism technologies deployed in defense against or response or recovery from an act of terrorism:

(A)

Contractors, subcontractors, suppliers, vendors and customers of the Seller.

(B)

Contractors, subcontractors, suppliers, and vendors of the customer.

(4) Third party claims

Such liability insurance under this section shall provide coverage against third party claims arising out of, relating to, or resulting from the sale or use of anti-terrorism technologies.

(b) Reciprocal waiver of claims

The Seller shall enter into a reciprocal waiver of claims with its contractors, subcontractors, suppliers, vendors and customers, and contractors and subcontractors of the customers, involved in the manufacture, sale, use or operation of qualified anti-terrorism technologies, under which each party to the waiver agrees to be responsible for losses, including business interruption losses, that it sustains, or for losses sustained by its own employees resulting from an activity resulting from an act of terrorism when qualified anti-terrorism technologies have been deployed in defense against or response or recovery from such act.

(c) Extent of liability

Notwithstanding any other provision of law, liability for all claims against a Seller arising out of, relating to, or resulting from an act of terrorism when qualified anti-terrorism technologies have been deployed in defense against or response or recovery from such act and such claims result or may result in loss to the Seller, whether for compensatory or punitive damages or for contribution or indemnity, shall not be in an amount greater than the limits of liability insurance coverage required to be maintained by the Seller under this section.

Source credit: (Pub. L. 107–296, title VIII, § 864, Nov. 25, 2002, 116 Stat. 2240.)

history & why it existsrecord from the source credit
  • 2002Enacted · Pub. L. 107-296 · 116 Stat. 2240

A history note hasn’t been published yet. The record shows enactment by Pub. L. 107-296 on 2002-11-25.

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