Other space insurance coverage

In addition to the conventional property and liability risks, a space project is exposed to a significant number of non-physical risks, including:

• Political risk, which includes confiscation and embargo. In most cases, political risks can be covered under specialized insurance programs, such as those managed by Coface on behalf of the government. Any additional insurance needs can be met through private insurance options.

• Commercial risk, which includes the risk of insolvency or bankruptcy on the part of a client, for launchers, to cite one example. Special insurance coverage can be contracted to cover this risk.

• Business interruption: Provided that sufficient capacity is available on the market, this insurance covers the expected loss of revenue following failure of the satellite to perform, or due to loss or damage during the satellite's life in orbit.

• Delayed launches: In this case, the insured seeks protection against financial losses due to the failure to launch a satellite on the scheduled date. The delay must be due to damage to the spacecraft, occurring either during its manufacture or following a postponement of the launch due to unsuccessful previous launches. In practice, this is a kind of advanced loss of profits coverage.

• Profit-sharing scheme: The price of a satellite generally includes both fixed and variable components; the latter contingent upon its performance in orbit. The variable component may be insured by the manufacturer with the operator's consent, under a profit-sharing scheme. These schemes seek to provide manufacturers with additional incentive to provide the best possible product by making the purchase price of the satellite contingent on its performance in orbit. Via business interruption coverage, manufacturers will be indemnified in the event that these profit-sharing schemes are activated.

• Transponder coverage (channels): This type of policy covers the loss of revenue and financial losses to which those who rent channels are exposed in the event of channel malfunction. Since satellite operators generally do not compensate their clients for this type of occurrence, business interruption coverage may be warranted to protect revenue streams. Typically, this type of coverage is taken out by television channels that broadcast via satellite.

• Contractual Incentives and Warranty Payback: The satellite manufacturer (and subsystem or component suppliers) may seek contingency insurance for the amounts at risk in the satellite sales agreement and which would not be paid by the operator in the event of satellite non-performance.

• Regulatory risks, related to telecommunications or frequency plans.