Specialist Aon business International Space Brokers has announced the launch of what it claims is the first policy strictly designed for space project investors.

“Investment protection insurance” is designed to cover the loss of an investment in space satellites, launch failures and satellite assets.

The broker says it has used its leverage with the insurance market to introduce new capital in response to a lack of coverage for investors.

“As developments continue to increase for areas such as delivering broadband as well as pollution and disaster monitoring, lack of liquidity in the financial markets has delayed industry growth,” Space Business Unit Leader Clive Smith said.

Claims will be triggered by damage or total loss of the satellite, with payments intended to recoup the loss of traded securities of the satellite operating company in which the insured has invested. Aon will collect the securities as salvage in the event a loss is paid.

“For start-up companies, which rely on the revenue generated by the early launches, the ability for the satellite to be successful is crucial,” Aon said.

The broker claims the policy will enhance satellite operators’ credit rating “by relieving investors of the biggest risk, failure to launch”.