Why it matters for your company
The policy follows the satellite through the most dangerous minutes of its life. If the launch vehicle fails or the spacecraft does not reach its intended orbit, launch insurance pays the insured value, which normally includes the build cost and often the launch cost.
Underwriters read the launch vehicle's flight record, the spacecraft's heritage and the test campaign. Pre-launch coverage for flight hardware in the cleanroom and in transit is a separate stage placed before the launch policy attaches.
Related terms
- In-orbit insuranceCoverage for loss of or failure of a spacecraft after launch coverage ends, usually renewed year by year. It answers a satellite that stops working or loses capacity in orbit.
- 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.