The Facility Form Policy is issued to owners or operators of nuclear facilities. Coverage is strictly limited to liability for bodily injury or offsite property damage caused by nuclear material at the defined location or while in transit to or from the defined location. With minor exceptions, no coverage is afforded for damage to any property onsite.
The policy excludes coverage for workers’ compensation and employers’ liability. These exclusions are intended to dovetail with the coverage available in the conventional market for WC and EL exposures. The policy also excludes coverage for radiation-related tort claims of workers (provided under the Facility Worker Form).
The Facility Form Policy is purchased by all commercial nuclear power plant operators in the United States and satisfies the Price-Anderson Act requirement for primary financial protection. Also, it is purchased by operators of several other types of nuclear facilities. The maximum limit of liability is currently $450 million.
Liability Policy Features
- Policies are written on a continuous basis and are subject to a single lifetime aggregate limit. Our liability is thus “capped” under each policy.
- Defense costs are included within the policy limit and the limit is automatically reduced by any payments for loss or loss expense.
- The Facility Form Policy insures all interests (except the US government) with respect to their legal liability for covered damages. Coverage thus is channeled under one form, preventing stacking of limits.
- Coverage applies only to claims made for bodily injury or property damage caused during the policy period and only if such claims are brought within ten years of policy termination.
- For a “common occurrence” as defined, ANI’s liability is limited to our maximum liability capacity, regardless of the number of separate policies that apply to the same incident.
- Offsite environmental cleanup costs arising out of governmental orders or directives are specifically excluded, with minor exceptions for costs resulting from clearly identifiable accidents.
- Onsite property damage and onsite cleanup costs are specifically excluded.