ANI's liability coverages are designed to satisfy the requirements of the federal Price-Anderson Act which established a framework for handling potential liability claims that could arise in the event of a nuclear incident.
Four liability policies are described in this section:
- Facility Form Policy: Primary financial protection purchased by commercial nuclear power plant operators and several other nuclear facilities.
- Secondary Financial Protection (SFP) Policy: This policy is “following form” coverage for operators of nuclear power plants for a loss that exceeds the $300 million limit of the Facility Form Policy.
- Facility Worker Form Policy: This policy covers radiation tort claims of workers at nuclear facilities insured by ANI. This is an industry-wide program subject to a single industry aggregate.
- Supplier's and Transporter's Policy: This policy is designed for companies providing services to operators of nuclear facilities.
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 U.S. 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.
- Tort claims of workers are specifically excluded under individual Facility Form and S&T policies, except for claims arising out of an “Extraordinary Nuclear Occurrence” as defined. This exclusion eliminates the potential for cumulation of limits under multiple policies.
- 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.