The primary underwriter that will be responsible for the payouts is going to be AIG.
The disaster that occurred on Friday when the Virgin Galactic spaceship crashed has approximately $40 to $50 million in insurance coverage, and the main insurer that is going to be responsible for those payments is reported to be AIG.
This, according to the broker on the deal, Jardine Lloyd Thompson, a British brokerage and insurance services provider.
At the time that this article was written, AIG declined the opportunity to comment on this insurance coverage. According to a statement that was issued by Jardine Lloyd Thompson (JLT), “We act on behalf of Virgin Galactic and are providing every assistance, as is appropriate in these tragic circumstances.” This is, of course, in reference to the space tourism company that is owned by Richard Branson, the famed British billionaire businessman.
The insurance coverage in this disaster is making even bigger news as it was not the only space related accident in one week.
A rocket probe from Virginia exploded, as well. That was unmanned and had been intended to provide supplies to the space station. In the case of Virgin Galactic, however, the situation was much more tragic, as the craft was piloted, and while one was killed, the other was injured. The spacecraft had been on a test flight when it crashed into the Mojave Desert in California.
Estimates with regards to the insured losses have shown that they will be comparable to those that were associated with the unmanned American supply rocket that exploded in Viginia. That said, the types of insurance policy that were covering these two different types of vehicle were not the same.
The spaceship from Virgin Galactic has insurance coverage through a “hull and liability” aviation policy. On the other hand, the exploded supply rocket had its protection within the space market, according to specialists in the insurance industry. The Lloyds of London market has played a critical role in aviation insurance, as its gross written premium has been calculated to total over $1 billion, last year. This according to data from the International Underwriting Association.