Space risk management has evolved from an infant industry providing simple launch insurance, to a complex discipline combining contract analysis and advice, risk evaluation, alternative risk transfer concepts, insurance program design and implementation, and claim negotiation.
SpaceCo is well equipped to meet the demands of this exciting and challenging field and provides insurance capacity and its expertise in relation to space risks insurance in the following fields:
Pre-launch insurance protects against loss or damage to the spacecraft and/or the launch vehicle whilst it is in its manufacturing and testing phase. Coverage usually terminates when the spacecraft and/or the launch vehicle leaves the manufacturing plant in order to be transported to the launch pad.
Pre-launch insurance protects against loss or damage to the spacecraft and/or the launch vehicle whilst it is in transit, on the launch pad or in storage. Coverage commences at the manufacturer's facility and will usually terminate at intentional ignition of the launch vehicle designated to launch the spacecraft.
Additionally, this insurance may cover contingent exposures until the launch for any indirect loss of revenue incurred, and/or continuing operating expenses due to spacecraft or launch vehicle damage prior to lift-off.
Production facility and Launch pad Property Damage/EAR/CAR
This insurance protects all production sites and launch facilities either during the erection or during the operation phase. This kind of insurance is considered as space risk, in consideration of the technical specificities of the facilities itself (clean rooms, explosive devices, etc…), the equipment which is handled (spacecrafts and launch vehicles) and the specific operations during pre-launch and launch phases (fueling, commanded launch destruction, etc.)
Launch and commissioning
Launch insurance protects the spacecraft, launch system and additional costs through the spacecraft-commissioning period, usually 180 days (e.g. launch starts from either intentional ignition or release of clamps.) When a spacecraft owner/operator purchases a launch risk guarantee (“LRG”), a policy tailored around the LRG may be required to insure the difference in conditions between the terms of the contract and the actual financial exposure.
In-orbit insurance covers the spacecraft during its operational life and up to its orbit rising to graveyard. These contracts are placed after extensive review of the spacecraft health status.
In-orbit incentives insurance provides covers for manufacturer’s obligation towards its client in case of non-performance of the spacecraft compared to the specified data.
Service Interruption/Loss of Revenue / Broadcast Events
Service interruption insurance is purchased either by a spacecraft owner/user or individual transponder users such as TV channels, Internet providers, but also for example banks, car manufacturers and several large industries that use telecom networks. This insurance covers any loss of revenue and/or extra expenses incurred if the spacecraft fails to perform to contract specifications.
A policy can be provided for short period risks to specific broadcasts, such as conferences or sporting events. In the event that spacecraft or ground system failure occurs, coverage is provided for loss of revenue or production expenses that may be incurred by the operator.
Liability service covers third party liability arising out of launch of a vehicle, or the in-orbit operations of a spacecraft. The coverage includes diverse risks such as damage to persons or property at a launch site, destruction of a launch vehicle (including liability assumed under contract if required) or damage caused to another spacecraft during in-orbit operations.
For companies that have decided to self-insure all or part of their space risks, several insurance products are proposed, whatever scheme or structure is retained to manage these risks. SpaceCo/AGF has a recognized experience of these insurance products.