That said, the contents of the rocket may have been covered by their own policies.
The SpaceX explosion shocked the world, particularly when it was revealed that the Falcon 9 rocket was not insured. The rocket burst into flames on the launch pad in Cape Canaveral, Florida. There were neither fatalities nor injuries in this explosion, which did make it a very fortunate one.
That said, due to the lack of coverage, SpaceX will likely need to cover the losses from the rocket.
Moreover, it will also need to deal with the financial hit form delaying the transportation of goods into space. This is not the first SpaceX explosion, but it has been a while since one has happened. This could hurt public confidence in this Elon Musk-owned company, which remains quite new.
What’s interesting is that it is quite possible to purchase rocket insurance. Bloomberg reported that several large insurance companies offer policies for rockets. These include Swiss Re, Allianz, Munich Re and America International Group.
_________________________Random Success Quotes to Remember ~ “People will accept your ideas much more readily if you tell them Benjamin Franklin said it first.” - David H. Comins
Past SpaceX explosion losses have been covered by policies because the rockets were still being insured.
For instance, in 2012, insurance companies received about $800 million in space launch insurance premiums. Of that, they paid out about three quarters, $600 million, in order to cover losses sustained in 2011.
That said, according to the Bloomberg report, SpaceX did not purchase space launch insurance this time. Fortunately, much – if not all – the cargo did have its own insurance coverage. For example, the Amos 6 satellite from Israel’s Space Communications was on board. That satellite was designed to provide widespread internet service from Facebook in Africa. It was also insured for almost $300 million.
That said, it is unclear as to whether or not Space Communications will be able to collect on that policy. The reason is that coverage usually kicks in during a rocket launch. That said, this particular SpaceX explosion did not occur during a launch. It happened during the preparations for a test held two days in advance of the scheduled launch.