The nuclear power challenge is different today than it was two years ago. Once, the risk of nuclear disaster was rare, albeit extremely costly. Sept. 11, 2001, changed all that. The threat of deliberate attack now weighs heavier, highlighting the inadequacies of a liability framework that even prior to Sept. 11 could not ensure adequate coverage for third-party damage caused by nuclear disasters.
Governments around the world, individually and collectively, have established laws and agreements to hold nuclear operators liable. In the United States, for instance, the Price-Anderson Act imposes strict liability for nuclear incidents, but limits that liability to $9.4 billion. Insurance companies have tried to offer insurance to cover such risks. But terrorism could overwhelm current systems.
