Covers for satellites in commercial space flight

Pre-launch insurance provides all-risks coverage for material damage in the pre-launch phase. This phase comprises  the satellite’s move  from the manufacturer’s premises to the launch site; the satellite’s  launch configuration,  integration  into the launch vehicle; and all  launch  preparations.

The coverage generally terminates when the ownership of the satellite – and hence the risk – passes from manufacturer to purchaser.  At the latest, the risk transfers  when the launch can no longer be aborted  –  often  a few seconds after ignition. In such cases, pre-launch insurance covers – if only for a very short time – the risk that the launch vehicle will fail to operate. If the cover has terminated at an earlier point in time, it may reattach if the launch is aborted (post-abort coverage).

We offer pre-launch insurance not only for satellites but also for launch vehicles.

Launch insurance provides all-risks coverage for material damage and malfunctions occurring at any time between the beginning of the launch phase and the end of the positioning phase, i.e. until in-orbit testing has been completed. To accommodate  policyholders in their  wish for longer coverage period, launch insurance  nowadays  is usually granted for up to 365  days  after launch.

A partial loss is to be assumed if the satellite has become only partially operational or if its service life has been curtailed. If the impairment caused by a partial loss exceeds a certain limit, we speak of a constructive total loss.

The amount of compensation payable in the event of a total loss is specified in advance (agreed value).  It is usually derived from the replacement value of the satellite  –  essentially the cost of a new satellite, the cost of launching it, and the cost of launch insurance. In other words, the launch vehicle is not subject  to  a separate cover but is included as an additional cost factor in the insured replacement value.

Launch plus Life is the unique combination of launch insurance and in-orbit insurance. Launch plus Life provides all-risk coverage for material damage and malfunctions causing a complete or partial failure during all phases of a satellite life. In addition Launch plus Life insurance gives the operator full certainty with regard to market price changes restrictions over the satellite life and coverage restrictions introduced at in-orbit renewals.

A careful analysis of the satellite’s heritage, margins and redundancy is necessary to commit up to 15 years.