The same way you might purchase insurance for your house or car, satellite operators can purchase insurance for their satellites.
Space related insurance is usually a small, specialty line of insurance business within a larger multinational entity.
Types of Space Insurance Coverage
Within the space insurance market, many different types of coverage are available. Some of the key ones are described below:
Pre-Launch Insurance covers damage to a satellite or launch vehicle during the construction, transportation, and processing phases prior to launch.
Launch Insurance covers losses of a satellite occurring during the launch phase of a project. It insures against complete launch failures as well as the failure of a launch vehicle to place a satellite in the proper orbit.
In-Orbit Policies insure satellites for in-orbit technical problems and damages once a satellite has been placed by a launch vehicle in its proper orbit.
Third-Party Liability insurances protect launch service providers and their customers in the event of public injury or property damage, respectively, caused by launch or mission failure. In the United States, Federal Aviation Administration regulations require that commercial launch licensees carry insurance to cover third-party and property damage claims that might result from launch activity.
Re-Launch Guarantees are a form of launch insurance in which a launch service provider acts as an insurance provider to its customers. When a launch fails and a customer has agreed to accept a re-launch in lieu of a cash payment, the launch services provider re-launches a customer’s replacement payload.
Space Insurance Step-by-Step
