What type of space insurance allows launch providers to offer coverage for a replacement launch if the satellite is not placed in the proper orbit, or if it is damaged?

• A. Launch risk guarantee insurance
• B. Orbital replacement insurance
• C. Satellite recovery insurance
• D. Space vehicle liability

Answer: (A)

The core idea being tested is how insurance covers a failed or misdirected launch and the obligation to perform a replacement launch. Launch risk guarantee insurance is designed to ensure that, if the initial launch does not achieve the intended orbit or if the payload is damaged, a replacement launch is arranged and funded. This type of coverage explicitly addresses the risk that the mission must be repeated with another launch vehicle to get the satellite into its proper orbit, so it aligns with guaranteeing a second launch rather than insuring the satellite itself in orbit. Orbital replacement insurance, by contrast, centers on replacing the satellite once it’s already in orbit, not on guaranteeing another launch to achieve the initial orbit. The other options don’t fit because they cover different risks (recovering a damaged satellite, or liability to third parties) rather than guaranteeing a new launch to complete the mission.