In accordance with the Federal Nuclear Energy Liability Act, operators of nuclear facilities bear unlimited liability for nuclear damage arising from the operation of their facilities or the related transport of nuclear material. For damage relating to nuclear material in transit, the holder of the transport licence is liable.
Nuclear damage is covered by insurance up to the amount of 1.1 billion Swiss francs. For damage in excess of this sum, operators of nuclear facilities are liable without limitation with all their assets.
Insurance coverage is primarily provided by private insurance companies. Risks that private insurers cannot cover or are unable to cover in full will be covered by the federal government. In such cases, operators are required to pay a premium into the Federal Nuclear Damage Fund.
If all the available financial resources do not suffice to cover incurred nuclear damage, a situation of large-scale damage is declared. In this case, Parliament may specify a compensation plan for the just distribution of the available financial resources and the federal government may also pay additional contributions to compensate uncovered damage.
Switzerland has not acceded to any of the current international conventions on liability.
It concluded a bilateral agreement with Germany on third-party liability in the field of nuclear energy in 1986, which provides for equal treatment for citizens of both countries.