Under Federal law, the SAFETY Act automatically grants either full immunity, or a maximum dollar cap on the successful applicant’s liability arising from a terrorism event. There are also many other unprecedented benefits. These include exclusive jurisdiction in Federal court jurisdiction (no "venue shopping""), a bar on punitive damages, non-compensatory damages, pre-judgment interest and most other non-economic damage claims. SAFETY Act can help protect your directors’ and officers’ personal assets from stockholder suits alleging a breach of fiduciary responsibility in not applying. This liability exposure could also apply to a public official's liability as well as certain board members. 

See Below  &   Why Apply For SAFETY Act Protection?

Recent Quotes on SAFETY Act

All of the quotes below were taken from statements made to the House Committee on Homeland Security’s Subcommittee on Cybersecurity, Infrastructure Protection and Security Technologies. They all concern the hearing "Unlocking the SAFETY Act’s Potential to Promote Technology and Combat Terrorism" - 5/26/2011 

"The SAFETY Act Program continues to be very popular with the private sector and the Department [DHS] has continued its steadfast support for the Program."

Paul Benda, Acting Deputy Under Secretary for Science and Technology Directorate, Department of Homeland Security

"Since the SAFETY Act was enacted nearly 9 years ago, it has become - relatively speaking - one of the most successful programs managed by DHS.  Without the liability protections offered by the SAFETY Act, numerous critical products and services would not be in the marketplace, defending American citizens and property.  Moreover, the intrinsic value of the SAFETY Act and its liability protections is easily demonstrated by the numerous customers of anti-terrorism products and services that strongly encourage – or even require – that the anti-terror tools they purchase must have SAFETY Act protections."

Brian E. Finch, Esq., Partner, Dickstein Shapiro LLP, Government Law & Strategy Group and head of the firm’s Homeland Security Practice

"The SAFETY Act is but one vital tool that helps us become a safer and more secure nation."

Marc A. Pearl, President and CEO, Homeland Security & Defense Business Council

"We believe the SAFETY Act provides a tremendous national security benefit and provides incentives, through risk mitigation, for industry to develop homeland security solutions." "By leveling the playing field and capping financial exposure The SAFETY Act encourages innovation."

Craig A. Harvey, Founder, CIO & Sr. Business Development Mgr. at NVision Solutions, Inc. 

“In light of the potential liability MDI faces in developing and deploying anti-terrorism technology, MDI highly values the risk management and litigation management provisions of the SAFETY Act.  We are not alone in this view.  Investment decisions involve an evaluation of risk -- SAFETY Act protections limit and define risk allowing investors to have confidence in their decisions.”

Scott Boylan, Vice President and General Counsel, Morpho Detection, Inc.

  SAFETY ACT PROTECTIONS

There are three different “levels” of SAFETY Act protection that can be granted to the applicant - Designation, DTED, and the highest level, "Certification".

DESIGNATION

The Designation “label” actually applies to the product or service that the DHS has approved as the qualified anti-terrorism technology or “QATT”.

Once “Designated”, the applicant, now deemed the “Seller”, is automatically protected under the applicable SAFETY Act provisions. The Seller has the option of listing their product, technology or service under “Designations for Homeland Security” on the SAFETY Act website. 

Benefits provided under SAFETY Act Designation include:

• A limitation, or “cap” on your liability equal to the amount of liability insurance coverage you are required to carry by the DHS.
• Exclusive jurisdiction in Federal court for all related suits
• Punitive damage claims are barred
• Non-compensatory damages are barred
• Non-economic damages are barred unless the plaintiff was physically harmed. Non-economic damages include things such as pain and suffering, mental anguish, loss of consortium etc.
• Pre-judgment interest is barred - Pre-judgment interest is interest on an award normally imposed by the court from the date of the event until the date the ultimate award is determined
• A prohibition on joint and several liabilities for non-economic damages - Only that percentage of the ultimate claim amount that is directly attributed to the given defendant’s negligence can be recovered
• Credit for Other Plaintiff Recoveries - The Seller’s liability would be reduced for other compensation that may be available to the claimant from collateral sources such as insurance recoveries or other defendants

DEVELOPMENTAL, TESTING & EVALUATION DESIGNATION 
("DTED" or "DT & E Designation")

CERTIFICATION

Once a product or service is “Designated”, the Seller becomes eligible for SAFETY Act “Certification”.  The Certification process is separate and distinct from the “Designation” process and requires a more detailed application form and higher level of review by DHS. Once Certified, the product, technology or service is required to be listed as an “Approved Product for Homeland Security” on the SAFETY Act's website.

A Certified party can invoke the “Government Contractor Defense” for covered claims arising out of the designated QATT.  The successful assertion of this defense eliminates any and all liability on the part of that Seller. The only exception would be proving that the Seller acted fraudulently or with willful misconduct in the SAFETY Act application process for Certification.

Unique to SAFETY Act, once a product, technology, facility and/or service is Certified, the approved applicant or "Seller" can invoke the Government Contractor Defense regardless if the claim or claims result from the QATT's deployment or use by the Federal Government or the deployment or use entirely within the civilian sector by all non-governmental entities.

While the SAFETY Act does not specifically delineate the scope of the GCD, its legislative and precedent history clearly demonstrate its scope is very broad.

For example, based on case law, it appears clear that under the government contractor defense, a SAFETY Act Certified entity could not be held liable for many of the typical allegations seen in lawsuits including:

• Design defects, or
• Duty to warn or failure to warn claims 

OTHER SAFETY ACT BENEFITS

Unprecedented Liability Protection for Others

If you provide or sell to others, your SAFETY Act approved products, technologies or services will "flow" unprecedented liability protection to your customers, suppliers and subcontractors. They are automatically granted Federal immunity from lawsuits stemming from an act of terrorism where your products or services were in use.  

This immunity also applies to any other entity that uses, sells, provides or is otherwise involved with your approved product or service.  They are all immune from civil suits related to an act of terrorism when a SAFETY Act approved product, technology or service ("QATT") was deployed or in use.  If any of these other defendants are named in a suit as allegedly being liable because of their involvement or use of the QATT in any way, they can seek immediate dismissal of the suit under SAFETY Act.  

Your competitors cannot provide this protection for their products or services that are not SAFETY Act approved. 

Save Money

If the SAFETY Act qualified products and/or services you select for your company, or design, manufacture, or provide to others, address all, or a significant portion of your terrorism liability exposure, you should be able to save money on your terrorism insurance premium.

Demonstrated Efficacy & Reliability

The detailed DHS SAFETY Act review process tells others that the products, facilities and/or services you have selected successfully passed the very stringent DHS scrutiny and evaluation process required for Designation or Certification.  

 IMPORTANT NOTES

• The Act protections apply perpetually to all qualified technologies or services provided during the actual term of Designation
• SAFETY Act can be deemed to apply to overseas acts of terrorism provided that it causes harm, including financial harm, in the United States
• The SAFETY Act’s protections do not apply to any loss that is not the result of a terrorist attack
• The SAFETY Act’s protections do not apply if the technology or service is “Significantly Modified”

Our Core Services:

• Free Initial Consultation

• Help Reduce Your Costs

• Detailed SAFETY Act Applicability Evaluation

• Evaluate Your Exposures

• Review Your Overall Terrorism Financial Protection Strategies

• Provide Cost Effective Solutions

• Provide Reports as Requested

• SAFETY Act Application Support

• Provide Updates & DHS Feedback

• Negotiate with DHS, Lawyers, Brokers and/or Insurers as Needed

• Evaluate Existing Approvals for Issues & Conflicts

• Review Insurance Program for Conflicts, Compliance, Adequacy and Any Potential Savings

• Review Contracts & Agreements for Conflicts, Issues, Compliance and Modifications Needed

• Assist in Upgrading Existing SAFETY Act Approvals

• Help You Use SAFETY Act to Better Market Approved Products or Services

• Help Create an Overall SAFETY Act Strategy Plan for You, Your Customers, Suppliers or Subcontractors

• Provide Expert Consultation and Access to Key Business Partners as Needed

• Consult on Other Terrorism Related Financial Protection Strategies & Solutions 

  

Contact Us

 

By e-Mail:       e-Mail

INFO [at] SAFETYACTCONSULTANTS [dot] com

 

Online:            Web-form

 

Phone:       (202) 640-4000

 

Toll-free:      (877) S ACT HELP 
                           (877)     722  -  8435

Fax:             (202) 407-7054

 

Mailing Address:

SAFETY ACT CONSULTANTS
P.O. Box 4028
Barrington, IL 60011-4028

 

 

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We look forward to assisting you in creating customized solutions critical to your organization and key in helping protect the public.

We will help you:

Protect Your Organization from enterprise threatening liability that will follow a terrorist event alleged to involve your organization's facilities or products in any way

Protect your bottom line from suits stemming from the use, manufacture, distribution, provision or deployment of anti-terrorism or terrorism response or mitigation related products, advice, aid, procedures, technologies or other services

Save Money on both new and existing insurance programs, the ongoing cost of risk as well as the overall SAFETY Act process

Increase Your Revenue by using SAFETY Act approval to help market your products, advice, facilities, technologies or services including cyber or network related

Thoroughly understand the SAFETY Act as well as the regulations that implement it

Thoroughly understand the SAFETY Act application process

Evaluate the Act's benefit to your organization, insurance,  products, suppliers, vendors and customers

Determine if SAFETY Act
protection can apply to a given product, facility, technology, procedure and/or service

Describe and review the Act with your risk management, legal, upper management, finance, engineering, and marketing groups as needed 

Evaluate the time demands, costs and difficulty of the application process for your unique exposures

Manage the entire application process through completion

Evaluate insurance programs for adequacy in coverage, limits, protecting your liability cap savings, insurer and SAFETY Act compliance

Evaluate contracts and other agreements for conflicts, issues adequacy as well as insurer and SAFETY Act compliance

Provide options for minimizing cost of insurance and risk while maximizing coverages

Arrange for outside experts as appropriate for your specific needs including experts in technical, legal, insurance and political affairs as well as physical and financial asset, business income and supply chain protection

Monitor the SAFETY Act status of your suppliers, vendors, subcontractors and customers

Negotiate with the DHS, insurance brokers, insurers and/or lawyers if potential problems, conflicts, limitations, potential savings or enhancement possibilities exist

Create a standardized process to coordinate and manage all SAFETY Act related activities for existing, planned or future exposures as well as third party approvals (i.e. your vendors)

Post approval support including any changes in your insurance, the insurance market, insurance costs; changes in your approved products or services; periodic review of compliance and other services you deem necessary

Advise on other terrorism related financial protection strategies including contractual protection review, FARs, Public Law 85-804, Government Contractor Defense - "Boyle", captive utilization and/or formation, conventional and non-conventional terrorism insurance coverages, TRIA applicability and access, etc.