Pre-launch insurance covers satellite construction risks and other risks relating to the transportation from the factory to launch site. At launch site, storage, integration with launch vehicle, pre-launch testing and propellant loading shall be covered. This phase terminate at “launch”.

Launch and commissioning phase

Launch vehicle flight commences at “Launch” and terminates at separation of satellite from launch vehicle. The phases of commissioning and early operations include some steps: separation from launch vehicle, transfer to final orbit, solar array and antenna deployments, in-orbit testing and commissioning, handover to customer.

In-orbit operations

After commissioning or handover, satellite enters services. Typical lifetime ranges from 5 to 15 years of continuous operation. Ongoing coverage shall be insured during satellite’s mission life. And policies may be renewed annually with “statement of health”.

Coverage: third party legal liability

Space insurance for third party legal liability shall cover property damage or bodily injury to a third party arising out of the use of the satellite; and greatest exposure during launch (satellites do not usually bump into each other in space…). Sums insured typically are from US$ 100 to 500 million. There have been very few claims historically for the compensation for the third party legal liability. Most of buyers of space insurance for the third party legal liability are launch services agencies and some are operators.

Source: Documents of Willis International Aviation Insurance Course 2010