INSURING SMRs | POLICY & FINANCE
Figure 1: Structure of US nuclear liability insurance under the Price-Anderson Act. $750.6M
Private Insurance (First tier)
$15.012B $500M Total pool $16.263 billion
Owners of nuclear power plants pay for $500 million in private insurance. If a nuclear accident surpasses this amount, each reactor pays up to $158.026 million into a second tier insurance pool plus up to a 5% surcharge.
Source: Adapted from Nuclear insurance, US Nuclear Regulatory Commission (NRC) This framework is designed to cover third-party
claims for bodily injury, property damage, and certain environmental losses, while providing a predictable compensation mechanism. For SMRs, which may involve new ownership models, siting approaches, and supply chains, aligning these coverages with regulatory expectations may present additional challenges. In addition to the Price-Anderson Act, Nuclear
Regulatory Commission (NRC) regulations in 10 CFR Part 140 establish detailed financial protection requirements based on reactor size and operating status. These regulations differentiate between nuclear power plants with a rated capacity of 100 MWe or greater and those with lower electrical output, a distinction that is particularly relevant for small modular reactors (SMRs) and microreactors. For smaller units, required liability coverage may be reduced or determined on a case-specific basis, reflecting their lower potential risk profile. The regulations also include provisions for multiple reactors located at a single site. This allows the NRC to evaluate financial protection requirements on a site-specific basis. This introduces additional flexibility for SMR deployments but also creates complexity in structuring appropriate liability coverage for multi-unit configurations.
Industry Self-Insurance (Second tier)
5% Surcharge
Building on this framework, the NRC’s proposed rulemaking for microreactors under 10 CFR Part 57 further reinforces a risk-informed approach to financial protection. The proposal recognises that microreactors and other reactors with comparable risk profiles may present substantially lower radiological risks than traditional large reactors and therefore may warrant reduced levels of required liability coverage. Under this approach, the NRC would retain discretion to determine appropriate financial protection requirements on a case-by-case basis, considering factors such as the type, size, location, and hazard profile of the facility, as well as the availability and cost of private insurance. The rulemaking also contemplates the potential for reduced indemnification obligations for certain licensees, aligning Price-Anderson financial protection requirements more closely with the actual risks posed by advanced reactor designs.
Additional nuclear insurance Unlike liability insurance, which protects the public, nuclear property insurance focuses on the facility itself. Coverage typically includes physical damage to the plant, equipment, and infrastructure, as well as stabilisation, decontamination, and recovery costs following an incident. In the United States, reactor licensees are generally required to maintain approximately $1.06bn in onsite property insurance per reactor site. This coverage is provided by Nuclear Electric Insurance Limited (NEIL), a mutual insurer specialising in nuclear risks. Globally, nuclear liability is governed by a set of
international conventions, including the Convention on Supplementary Compensation for Nuclear Damage (CSC), the Paris Convention and Brussels Supplementary Convention, and the Vienna Convention and Joint Protocol. While implementation varies by jurisdiction,
www.neimagazine.com | June 2026 | 27
SMR developers may pursue multi-unit deployments, novel reactor designs, or non-traditional ownership structures, all of which introduce new risks from an underwriting perspective. Source: NuScale
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