US may have enough resources to pay compensation “above zero” if it will be crazy enough to use nukes against Mexico. So it is the question of risk of applying of nukes and stated premium amount whether US should pay anything or not (btw insurance should be paid to safe places such as union of nations who will be able to give this money to victims)
The idea is to make a law against poor unpredicted countries with nukes (such as Pakistan or North Korea) so that they don’t use nukes as argument in the politics to make profits as it could end up badly.