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Space

As an insurance market, Lloyd’s can provide access to the combined scale, expertise and capacity of more than 34 expert space risk insurers in one place. It is this ability to create relevant and tailored insurance solutions from the diversity of the market that sets Lloyd’s apart.

Underwriters often collaborate with other teams across their business, so if you need additional coverage such as export credit coverage or errors and omissions coverage, ask your Lloyd’s broker to look into it for you.

These are examples of the coverage available through the Lloyd’ s Market. Individual policies are subject to their own terms and conditions, and some types of cover may be excluded. It is important that you read your policy to ensure that it provides the cover you require.

This provides coverage from the manufacturer, during the transit to the launch site, through testing, fuelling and integration with the rocket launcher.

Launch insurance can cover: the launch, orbit raising, in-orbit testing, commissioning into service and a +1 option to cover in-orbit operations for the remainder of the year.

The launch is often the riskiest part of any space activity, and while the risk only exists for a relatively short period of time, the damage is often catastrophic. Occasionally, it can have other impacts such as a satellite being placed into an orbit that reduces its operational life or  compromises its performance in some other way.

This product covers all satellites that make up a constellation. For example, the operational  life of a spacecraft can be up to 15 years, so this insurance can cover damage or failure to perform according to its specifications. This can also include failure to meet contractual obligations. As more constellations become linked with each other, and the dependence on space-based services increases, risk aggregation will quickly increase, making it even more important to have the right insurance cover in place.

Third-party liability insurance covers the legal liabilities of the insured to third parties for bodily injury or property damage, when the space object is on the ground, during launch or in orbit. The risk location is the territory in which the insured’s business establishment is located. Third-party liability covers the launch and time spent in-orbit.

While space is large, and the relative size of satellites is very small in comparison, collisions can have severe consequences. While there has not yet been an event in space to trigger this type of claim, the implications for the satellite operator at fault could be financially catastrophic. Despite the lack of historical incidents of this nature, risk managers should consider third-party liability as a serious threat to their businesses.

Consequential financial loss insurance covers the service interruption, loss of profits, revenue or additional expenses that might be incurred if a space object cannot be used following material damage. The risk location is the territory in which the insured’s business establishment is located.

Material damage insurance covers physical damage to, or loss of, a space object during one of the four stages of its life cycle. Contracts may cover the object during its manufacture, pre-launch, launch and orbit. The insured may be a satellite manufacturer, satellite operator or a provider of launch services.

Most territories treat space objects as ‘moveable property’ and the risk location is usually determined by the physical location of the object. However, where the moveable property's location is uncertain or variable, the risk location is the territory in which the insured's residence or business is located.  Therefore, for regulatory and tax purposes, European Economic Area member states usually consider the risk location for launch and in orbit risks to be the territory in which the insured’s business is located.  The location of risk for space objects in transit or temporary storage follow the rules respectively for goods in transit or normal storage risks. 

Space incidents can lead to significant loss of revenue and can bring business operations to a halt. This policy provides coverage for lost income resulting from interruption to, or the downtime of, an organisation.

Data breach can have serious implications for an organisation’s operations and reputation. A data breach response policy goes beyond a traditional liability insurance policy because it also provides a service that helps business manage the aftermath of a breach including the costs of notifying customers, forensic investigations, legal fees and public relations services.

Policies can cover anything from a launch vehicle blowing up during the ‘climbing phase’, a spacecraft that fails to separate from its launch vehicle, a solar array doesn’t deploy, a short-circuit that stops in-orbit operation, or a satellite damaged by space debris.

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