Cover is for loss, accidental damage, mechanical breakdown and failure to work as intended based on agreed value of the satellite.
Partial losses pay a portion of the agreed value. Loss formula typically compares actual satellite capability with stated capability and includes lost future performance. Total losses pay full agreed value if satellite is destroyed or useless.
Key loss formula capability elements include: fuel, power and number of operational transponders.
Critical policy details:
- Partial Loss and Constructive Total Loss definitions
- Material Change, Loss Notification and Salvage provisions
- Technical margins and deductibles
- Standard market exclusions (war, terrorism, nuclear perils, willful acts, etc)
Damage cannot be directly inspected by insurers: client must produce “Proof of Loss” to establish a claim.
Source: Documents of Willis International Aviation Insurance Course 2010