Objectives:

• To protect launch participants and the federal government from risk of catastrophic losses and potentially unlimited liability associated with commercial launch activities. Participants include licensees, customers and the government, as well as contractors and subcontractors of each, that are involved in licensed launching activities.
• To facilitate international competitiveness of the U.S. commercial launch industry.

• A licensee must obtain $500 million of insurance to cover claims against launch participants and the government in the event of third-party liability. Another $100 million is needed to insure government property such as rocket pads, buildings and other related launching facilities. In return, the federal government waives the right to any claim above that insured amount.
• The Congress appropriates up to $1.5 billion in additional insurance to protect against excess claims in the event of a launching accident or catastrophe such as high loss of life and/or property. The monies are contained as part of an FAA-drafted compensation plan.
• Any massive total claim beyond the regulated amounts ($500 million plus $1.5 billion) would have to be borne by the licensed launching company.

• Congress will most likely pass some form of renewal extension, although possibly not for a full five years, as the FAA is seeking.