That leading publication of the space industry, Insurance Journal, follows up a report on the web site of Lloyd’s of London that the insurer, famous for taking on risks conventional insurers shun, is considering providing coverage for Virgin Galactic. The insurance would cover the “hull value” of Virgin’s SpaceShipTwo vehicles; the cost would depend on “the safety and reliability of the venture established through its testing phase”, expected to feature up to 100 test flights.
The reports add that “third party liability cover may also be required” in the event of a crash or other damage to people living near the launch site. In fact, such coverage will be required if Virgin is going to operate under an FAA/AST launch license. Fortunately, that should not that expensive since the maximum probable loss should be small: after all, there aren’t that many people living near the New Mexico Spaceport.
As for insurance for the passengers? Don’t bother, at least for now: “initially passengers may have to travel at their own risk as insurers could be reluctant to provide personal accident cover until a safety record for the flights is established.”
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