SpaceX successfully launched a rocket into outer space this week. It is the first commercial company to send a rocket and spacecraft to the International Space Station. This is the type of situation that has the potential to go catastrophically wrong. Naturally, SpaceX required a special type of insurance coverage.
Are your children little scientists? If so, then you are probably acutely aware of the many space related events that occurred this month. We had a Super Moon a few weeks ago. More recently, we had a special solar eclipse that caused the moon to appear as though it was encircled by a ring of fire. There has also been not one, but two attempts by SpaceX to launch a spacecraft.
SpaceX is a commercial company. It isn’t part of NASA. Therefore, it is pretty remarkable that it has managed to launch a spacecraft into space. In fact, it is the first commercial company to do it. SpaceX launched its Falcon 9 rocket, which was carrying a Dragon spacecraft, into orbit on Tuesday, May 22, 2012. The first attempt at this launch was unsuccessful. The launch on Tuesday, though, was a success.
The purpose of this mission is to bring cargo to the scientists that are aboard the International Space Station. I’ve heard it said that it will take 25 hours for the scientists to unload the cargo. I believe that the SpaceX rocket will be loaded up with trash, dirty laundry, and other items that need to be removed from the International Space Station before it makes its return to Earth.
There are many potential dangers that can cause something to go wrong when a rocket is launched into space. What type of insurance would a company like SpaceX require, to cover the potential losses? At this time, it is not known exactly what insurance company is providing insurance to SpaceX.
However, some more general information is known. According to Joshua Byerly, who is a spokesman for National Aeronautics and Space Administration, or NASA, the Federal Aviation Administration, or FAA would require a company like SpaceX to carry third party liability insurance. The amount of the insurance would be calculated for maximum probable loss.
He went on to say that NASA doesn’t have any insurance requirements. NASA and SpaceX have cross waivers of liability negotiated into their Space Act Agreements and cargo contracts. NASA also self-insures its cargo.
Image by Steve Jurvetson on Flickr