Launch Risk Insurance – The Space Industry’s Way of Determining When a Satellite Has Been Launched
Launch Risk Insurance is provided by a number of reputable satellite manufacturers who provide this insurance protection to their customers. These companies cover all the risks associated with launching a satellite and their associated satellites. Their coverage includes not only the dangers of equipment failure, but also issues such as launch vehicle failure, tracking problems, system outages, telecommunications problems, and other events.
If you have been procured a satellite from one of these companies, whether it is for personal use or for NASA there are some things you should know. The agreement between you and the satellite manufacturer is very specific and requires that each side is protected from and holds harmless the other. Under the agreement, neither the Borrower nor the satellite manufacturer is obligated to pay for or compensate for damages, losses or claims, which might arise in connection with the launch, operation, or failure of the satellite, its components, satellites, and their various functions. Likewise, neither is liable for damages, losses, or claims resulting from acts or omissions of the other party.
Each satellite manufacturer is independent of the other, which means that they can develop their own programs and products, and operate their programs with full confidence that they will never experience a problem with their satellite products and services. If a satellite manufacturer does experience a problem with one of their satellites, then they can control the release of information to the public and their insurance company. This gives the satellite industry peace of mind, since they are able to prevent or mitigate many potential problems. The space industry and the satellite industry are symbiotic, a symbiotic relationship which has produced one of the most successful and cost effective businesses in today’s modern commercial world.