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The insurance for that one got complicated. It was destroyed in a static fire test that would have been a few days before the launch. Their launch insurance wou
by mikeash 7y ago
The insurance for that one got complicated. It was destroyed in a static fire test that would have been a few days before the launch. Their launch insurance wouldn't cover it, because even though it was destroyed by a rocket exploding on the launch pad, it wasn't actually going to launch. They also had marine cargo insurance to cover the satellite before then. However, pre-launch static fires with payload attached are pretty unusual in the launch business and the insurer had no idea this was going to be done. Arguing that they were unaware of the increased risk and that the insured failed to notify them as required, they only made a partial payment on the claim. A lawsuit ensued (no surprise with ~$100 million at stake) and is apparently still ongoing.