---
title: "What are the Most Common Causes of Satellite Insurance Claims?"
id: 64872
type: "post"
slug: "what-are-the-most-common-causes-of-satellite-insurance-claims"
author: "NSE"
published: "2023-10-20T20:44:36+00:00"
modified: "2023-10-20T20:56:51+00:00"
canonical: "https://newspaceeconomy.ca/2023/10/20/what-are-the-most-common-causes-of-satellite-insurance-claims/"
markdown_url: "https://newspaceeconomy.ca/2023/10/20/what-are-the-most-common-causes-of-satellite-insurance-claims.md"
description: "This article reviews some of the common reasons for satellites Insurance claims."
language: "en-US"
category:
  - "Space Economy"
post_tag:
  - "Falcon 9"
  - "Insurance"
  - "Radiation"
  - "Satellite Constellations"
  - "Satellites"
  - "SpaceX"
---

# What are the Most Common Causes of Satellite Insurance Claims?

![](https://i0.wp.com/newspaceeconomy.ca/wp-content/uploads/2023/10/newspaceeconomy_satellite_collision_with_space_junk_in_orbit_ov_a9304b38-e9e5-499e-bd52-e7f4b88c9a52.jpg?resize=696%2C696&ssl=1)

Here are some of the most common causes of satellite insurance claims:

### Launch Failures

Rocket malfunctions or explosions during launch are a [major cause of losses.](https://www.casact.org/sites/default/files/database/forum_00fforum_00ff047.pdf) Historically, launch failures have accounted for about 60-70% of all satellite insurance claims.

Notable examples include the 2018 [SpaceX](https://www.spacex.com/) Falcon 9 failure that destroyed a $200 million satellite and the [2019 Vega launch failure that resulted in a $415 million insurance claim](https://payloadspace.com/the-space-insurance-landscape/).

### Deployment Failures

Problems during the critical deployment and testing phase once in orbit are another common cause of claims. Issues like antenna deployment failures can render the satellite a total loss.

[The recent ViaSat-3 and Inmarsat-6 satellites may result in large claims due to suspected antenna deployment failures.](https://spacenews.com/connecting-the-dots-double-whammy-for-space-insurance/)

### Debris Collisions

[Collisions with space debris have caused a number of losses, though the overall probability remains low.](https://www.reuters.com/lifestyle/science/launching-into-space-not-so-fast-insurers-balk-new-coverage-2021-09-01/)

[The 2009 collision between an Iridium satellite and a defunct Russian satellite resulted in a $50 million insurance claim.](https://swfound.org/media/6575/swf_iridium_cosmos_collision_fact_sheet_updated_2012.pdf)

### Component Failures

Technical faults with satellite subsystems like power systems or gyroscopes can cause partial or total losses during operation.

### Human Error

Mistakes during manufacturing, testing, or operation can lead to losses.

### Adverse Space Conditions

The harsh temperature, radiation, or magnetic conditions in space can damage satellites over time and cause eventual failure.

### Summary

Launch and deployment risks historically account for the majority of claims, but debris, technical faults, and space conditions also play a role. [The changing risk landscape with large LEO constellations poses new challenges for underwriters.](https://payloadspace.com/the-space-insurance-landscape/)