Public policy papers Limits to insurance Paul Kovacs and Andrew Hallak January 2005 ICLR Research Paper Series - No. 42
It is inevitable that a meteorite will threaten a major urban centre. It is very unlikely to happen this year or this decade, but some day it will happen. The possible damage will be catastrophic. A typical insurance policy promises coverage, but there are limits to the capacity of insurance to pay. Moreover, damage from an urban meteor strike does not fit the principles of insurance coverage, and insurers may decide to exclude this peril before the strike occurs. National and international policy makers should develop preparedness plans, assuming that they will manage society’s recovery from a meteorite strike in a major urban centre, including responsibility for financial matters.