Satellite_insurance
Satellite insurance
Branch of aviation insurance
Satellite insurance is a specialized branch of aviation insurance in which, as of 2000, about 20 insurers worldwide participate directly.[1] Others participate through reinsurance contracts with direct providers.[1] It covers three risks: relaunching the satellite if the launch operation fails; replacing the satellite if it is destroyed, positioned in an improper orbit, or fails in orbit; and liability for damage to third parties caused by the satellite or the launch vehicle.[2]
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In 1965 the first satellite insurance was placed with Lloyd's of London to cover physical damages on pre-launch for the "Early Bird" satellite Intelsat I. In 1968 coverage was arranged for pre-launch and launch perils for the Intelsat III satellite. Satellites are very complex machines which are manufactured and used by governments and a few larger companies. The budget for a typical satellite project can be in excess of billions of dollars and can run 5–10 years including the planning, manufacturing, testing, and launch.