For more on this part of the insurance industry:
Satellite coverage safeguards organisations that own, operate, build, launch, or use satellites. It may cover satellites used for:
The UK is now one of the few countries able to use satellites from its own soil. Insurance is now essential to shield against loss, delay, or failure at any point of a satellite’s journey.
The UK Ministry of Defence launched Tyche, its first military-owned satellite, on a SpaceX rocket. It cost £22 million and now supports national defence, disaster response and climate monitoring.
A failed launch or malfunction would cause major loss and disrupt operations. Satellite insurance helps organisations recover fast and keep their missions on track.
More small satellites are being launched in batches which drives higher demand for launch and in-orbit insurance. New UK spaceports like Cornwall and SaxaVord mean insurers must now assess local launch risks and liabilities.
Satellite data is now widely used in farming. This leads to new demand for data loss and service interruption cover. Brokers must also assess emerging risks, like:
Along with these hazards is the rise in UK-based launches, which adds pressure on insurers due to unproven systems and shared launch risks. Brokers should review how cumulative exposures affect satellite insurance pricing and capacity.
Premiums for satellite insurance may range from 5% to 20% of the satellite’s value. For a £200 million satellite, insurance may cost between £10 million and £40 million.
The payload, including transponders, computers, and cameras, is often the most costly component. For instance, a standard weather satellite can cost around £210 million, with the payload accounting for a major portion.
It can make up a large part of the total cost and is usually the most expensive to insure.
Any business or organisation involved in handling machines launched into space to revolve around the Earth or other celestial bodies need this insurance. In the UK, satellite insurance is often taken out by:
Each group encounters different dangers depending on their role, from launch failures to in-orbit breakdowns or third-party damage on the ground.
These policies cover different stages of a satellite’s life, from preparation and launch to in-orbit operations. Each stage comes with its own hazards and insurance needs.
The most typically used coverage options include:
Each satellite insurance policy is tailored to the mission, with cover terms agreed in advance.
Yes, many insurers now use satellite data to support claims, risk modelling, and underwriting. This helps them track weather damage, monitor disaster zones, or check property conditions remotely.
Satellite imagery supports cover for:
Satellite tools make claims handling faster and more accurate. This lowers fraud and manual checks.
Most satellites are built to last between 10 and 15 years, depending on their purpose and fuel supply. Some smaller satellites may only last 3 to 5 years in orbit. Satellite lifespan is affected by:
Insurance is often aligned with this lifespan as it covers either short-term risks or the full mission duration. Visit the introductory guide to satellite insurance to learn more about it.
