Posted on 04/29/2012 3:18:06 AM PDT by Cincinatus' Wife
“Insurance! Who will insure these trips?”
The passengers will agree to liquidated or limited damages, so that is capped. The heirs will have to agree too. The crew will have life insurance and contractually limited claims by heirs. All standard stuff.
The issue that I am curious about is the inability of the company to limit its liability for damage and loss to third parties by falling debris. They could theoretically have almost unlimited liability should one of their large objects land on a sports stadium full of people. In this they have the same problem as commercial operators of nuclear power plants, except government passed a law to assume umbrella coverage for them.
I’m sure if they’re someone important to a major company there would be a clause prohibiting such risk taking.
And you raised a very good point about damages and losses to 3rd parties.
This is not an easy “speed bump” cost for commercial space to absorb.
One “oops” and the company folds.
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