Why it matters for your company
Once commissioning is complete, the risk shifts from a single violent event to slow failures: a power subsystem degrading, a thruster that will not fire, a collision with debris. In-orbit policies pay total or partial losses against definitions agreed at placement.
Small satellite operators often weigh whether to insure the asset at all, since replacement satellites are cheap relative to the premium. Third-party liability in orbit is a separate decision, and some launch and licensing arrangements require it.
Related terms
- Launch insuranceCoverage for loss of or damage to a spacecraft from the moment of intentional ignition through a set period after separation or in-orbit testing. It is priced mission by mission.
- Third-party liability for launch and reentryInsurance that pays for injury and damage a licensed launch or reentry causes to people and property outside the mission. In the United States the licensing authority sets the required amount for each license.
- Maximum probable lossThe largest loss reasonably expected from a specific licensed launch or reentry, calculated by the licensing authority. It sets how much third-party liability insurance the license requires.