Why it matters for your company
The calculation looks at the vehicle, the trajectory, the population under the flight path and the property at risk. It produces the insurance amount for third-party claims and a separate amount for damage to government property (14 CFR 440.9, accessed 2026-09-12).
For an operator, the figure arrives with the license terms and becomes the limit the liability placement has to meet before the license is final. The same phrase shows up in property insurance, where it means an underwriter's estimate of the largest likely loss at a location.
Related terms
- Third-party liability for launch and reentryInsurance that pays for injury and damage a licensed launch or reentry causes to people and property outside the mission. In the United States the licensing authority sets the required amount for each license.
- Launch insuranceCoverage for loss of or damage to a spacecraft from the moment of intentional ignition through a set period after separation or in-orbit testing. It is priced mission by mission.
Sources
- 0114 CFR 440.9, Insurance requirements for licensed or permitted activities (Cornell LII), accessed 2026-09-12