Space Insurance Focused on Assets Left Business Risks Exposed
Standard policies cover physical satellites but often exclude service disruptions, leaving many businesses vulnerable to outages.
Updated on Sept. 23, 2026 in Insurance
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Traditional space insurance primarily protects the physical value of launch vehicles and satellites, leaving companies reliant on GPS-based services without coverage for business interruptions. Only 3% to 4% of satellites currently in low Earth orbit maintain insurance, according to industry analysis.
Why it matters
Most insurance policies for space assets include infrastructure exclusions that leave non-space businesses exposed to service disruptions caused by cyberattacks or third-party failures. Relying on these systems for timing in financial transactions or power station operations poses a significant, often overlooked, financial risk.
Only 3% to 4% of satellites in low Earth orbit carry insurance, leaving the vast majority of infrastructure assets uninsured. While specialized teams have managed space risk for 35 years, these policies rarely cover the professional indemnity or supply chain risks common to business operations.
The players
Lloyd's
An insurance market that mandates managing agents address state-backed cyber threats within standalone policies.
Viasat
A global communications company that suffered a significant satellite network cyberattack in 2022.
Satellite Vu
A satellite operator that insured its first HotSat satellite to secure three years of operational funding.
The details
Space risk brokers traditionally operate in silos that prioritize first-party coverage for the satellite itself rather than downstream business services. Many satellite operators attempt to mitigate risks by launching redundant constellations instead of relying on traditional insurance. This leaves ground-based businesses vulnerable, as current policies often explicitly exclude cyberattacks and professional indemnity claims.
Timeline
2022: Viasat experienced a cyberattack on its satellite network.
Earlier this year: An insurance panel at the Space-Comm Expo discussed these coverage gaps.
September 23, 2026: Date of publication.
Money Landscape
The 2022 Viasat cyberattack serves as a key precedent for current discussions regarding the gap between physical asset coverage and digital service continuity. As businesses increase their reliance on space-based timing and navigation systems, this shift marks a departure from traditional satellite-only protection models.
Business owners relying on GPS for critical timing or data synchronization should review their current insurance policy exclusions to determine if third-party satellite failures are covered. Consult a qualified professional to assess whether your specific operations require standalone cyber or service interruption coverage.
The takeaway
The primary takeaway is that space assets are often insured for physical loss only, leaving your business exposed if those services are disrupted. Review your continuity plan and discuss with a professional whether your business interruption insurance effectively addresses risks originating from third-party space systems.
Further reading
Learn more about identifying coverage gaps in your commercial policies at Insurance.
Source note: This article includes information reported by Insurance Business.
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Should your business prioritize preparing for potential disruptions to satellite-based infrastructure like GPS?
