The SAFETY Act liability protections apply to a wide range of technologies, including: products, services, software and other forms of intellectual property that are designed or modified to identify, detect, deter, respond to, or otherwise mitigate the impact or harm arising from an Act of Terrorism. Protections apply only to claims arising out of, relating to, or resulting from an Act of Terrorism.
The SAFETY Act provides two levels of liability protections to help promote the creation, deployment and use of anti-terrorism technologies.
The seller’s liability for products or services that are deemed
Designated Technologies is limited to the amount of liability insurance that the Department of Homeland Security determines the seller must maintain. Designation can also be obtained for promising anti-terrorism technologies that are undergoing testing and evaluation (Developmental Testing and Evaluation Designations).
Designations and Developmental Testing and Evaluation Designations provide the following benefits to companies.
- Liability = Insurance required by DHS
- Exclusive action in Federal Court
- No Joint and Several Liability for non-economic damages
- No punitive or prejudgment interest
- Recovery reduced by amounts from collateral sources
Designations typically have a term of 5 years with the option to renew protections. Developmental Testing and Evaluation Designations typically have a term of 3 years and are meant to aid a company’s transition to a full Designation.
In addition to the benefits provided under Designation, Certification allows a seller of an anti-terrorism technology to assert the Government Contractor Defense for claims arising from acts of terrorism. Technologies that receive Certification will be placed on SAFETY Act Product List for Homeland Security.
For more information, please review the SAFETY Act 101 Briefing.