§443 Risk Management

Summary

Sellers of qualified anti‑terrorism technologies must buy liability insurance that covers third‑party claims if the technology is used in defense, response, or recovery from an act of terrorism. For all claims tied to 1 act of terrorism, the seller only has to buy up to the maximum insurance that private markets around the world can reasonably provide at prices and terms that will not unreasonably raise the seller’s sales price. The insurance must protect the seller and the seller’s and customer’s contractors, subcontractors, suppliers, vendors, and customers for claims from making, selling, using, or operating the technology. Sellers must sign a reciprocal waiver with those same parties. Each party agrees to pay for its own losses, including business interruption and employee losses, that it suffers from activities tied to an act of terrorism when the technology was deployed. A seller’s total legal liability for such claims cannot be more than the insurance limits the seller is required to carry. Seller: a person or company that sells or provides these technologies to federal or non‑federal government customers.