Financial responsibilities for licensed launches and licensed reentry activities are described in 14 CFR Parts 440.

Maximum Probable Loss (MPL)

The MPL determination is based on an analysis and assessment of the maximum monetary losses likely to be incurred by government and third party personnel and property in the event of a mishap. The MPL is a dollar value assessment of government and third party properties at risk of damage from launch-related activities or conduct. You may request a maximum probable loss determination separately to determine your financial responsibility requirements early on in your launch program. You can then elect to meet this requirement by:

  • proving you have financial reserves equal to or exceeding the amount specified,
  • placing the required amount in escrow,
  • or purchasing liability insurance equal to the amount specified.

The most common and preferred method is to purchase liability insurance.

Maximum Probable Loss is described in 14 CFR Part 440.7 and Appendix A to Part 440.

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