The Insurance Climate for Small Satellites and ELVs

The space insurance industry provides coverage for physical damage and liability risks to which space ventures are exposed as part of their business. The Insured party obtains insurance coverage through a Broker, who represents the Insured in soliciting coverage from the various Insurers in the world market. Physical damage insurance is designed to cover the value of an asset or the revenue it may provide, while liability insurance covers damage to the person or property of parties unrelated to those involved in launch activities. To date, five commercial launches of small ELVs have been conducted, and the necessary insurance has proven to be available at affordable rates. The forecast growth in the market for small spacecraft should prove attractive for insurers, and coverages should continue to be readily available for some time.