Why it matters for your company
A company holding a launch or reentry license must carry liability insurance or show financial responsibility in the amount set for that license (14 CFR 440.9, accessed 2026-09-12). The amount is based on a maximum probable loss calculation for the specific activity.
By statute the required amount cannot exceed $500M, or the maximum liability insurance available on the world market at a reasonable cost if that is lower (51 U.S.C. 50914, accessed 2026-09-12). A payload company riding on someone else's license is usually covered under the launch provider's policy and cross-waivers, which is worth confirming in the launch services agreement.
Related terms
- 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.
- 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.
- 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.
Sources
- 0114 CFR 440.9, Insurance requirements for licensed or permitted activities (Cornell LII), accessed 2026-09-12
- 0251 U.S.C. 50914, Liability insurance and financial responsibility requirements (Cornell LII), accessed 2026-09-12