Insurance for Space Systems

This paper describes the practice of insurance of commercial communications satellites. A historical review of the insurance of previous satellites is included, starting with the initial Comsat coverage of Intelsat satellites and continuing with the coverage of domestic communications satellites of the United States and other administrations. The types of insurance offered and their typical associated rates are discussed, together with an explanation of the coverage, premiums, and losses which have occurred to date. In the wake of the 1984 losses, estimates are provided of the currently available rates. The characteristics associated with direct broadcasting (heavy and expensive spacecraft, large deployable solar arrays, and high-power transmitters) will affect the future insurance rates for these satellites.