Space insurance is roughly divided into four types of coverage. They reflect the phases of most satellite projects – preparing and launching the satellite, then positioning and operating it in orbit.
Space insurance solutions are tailored to each policyholder’s needs. In insurance terms, space insurance is just like aviation insurance. You have hull and liability coverage. Hull coverage is for damage to the body of the rocket or satellite itself. Liability coverage is for damages caused by the insured object to other people or property.
The traditional space insurance market insures the value of satellites launched into orbit around the earth. While governmental and military satellites are usually self-insured, the financial backers of commercially owned satellites often require insurance to be in place.