Third-party space liability
Liability of a space operator for damage caused to third parties, on the ground or in orbit, by its space object.
Third-party liability in the space domain covers the damage a space object can cause to third parties, whether ground damage on re-entry, damage to an aircraft, or collisions with other satellites in orbit. This risk falls within a particular international legal framework, based on the 1972 Liability Convention, which establishes the liability of launching states. In practice, states require private operators to take out liability insurance covering this damage, as a condition for authorizing their activities. The proliferation of satellites and debris increases the risk of in-orbit collision and thus liability exposure, in an environment where establishing causation and attributing damage is technically and legally complex. For insurance, third-party space liability is a long-term risk, still rarely claimed but with growing severity potential, intersecting public international law, national authorization law and the evolution of orbital congestion.
An operator whose satellite strikes a third-party satellite in orbit can have its liability engaged, the launching state being bound under the 1972 convention.
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