The Uncharted Territory of Space Tourism Insurance


Space tourism has been a topic of fascination and intrigue for decades. The idea of traveling outside of Earth’s atmosphere and experiencing the unknown has captivated the minds of many. With recent advancements in technology and space exploration, the concept of commercial space tourism is becoming a reality. However, with this new frontier comes the need for a different type of insurance: space tourism insurance.

In the past, space travel has been reserved for specially trained astronauts and government-sponsored missions. But now, private companies such as Virgin Galactic and SpaceX are offering civilians the opportunity to visit space for a hefty price tag. While this may seem like a dream come true for adventure seekers, it also raises important questions about the safety and risks involved in space travel, and how they can be covered by insurance.

Space Tourism

The idea of space tourism insurance is relatively new and uncharted territory for the insurance industry. It presents unique challenges and potential risks that have never been encountered before. For instance, traditional travel insurance policies cover things like trip cancellations, lost baggage, and medical emergencies. However, they do not typically cover accidents or injuries that occur outside of Earth’s atmosphere.

One of the primary concerns when it comes to space tourism is the risk of accidents, which could result in serious injuries or even death. In 2014, a tragic accident occurred during a test flight of Virgin Galactic’s SpaceshipTwo, resulting in the death of one pilot and serious injuries to another. This incident highlighted the need for specific insurance to cover the risks associated with space travel.

The first company to offer insurance for space tourism was Space Services Inc., which developed a policy for commercial space flights in 1988. However, this policy only covered third party liabilities, such as damage to property on the ground. It did not cover passengers for injuries or death during a space flight. This lack of coverage for passengers is what sets space tourism insurance apart from traditional travel insurance.

ISB – International Space Brokers

As space tourism continues to become a reality, some insurance companies are beginning to offer specialized policies to cover the risks involved. For instance, the International Space Brokers (ISB) has developed a policy especially for space tourists, which covers medical expenses, accidental death and disability, and even cancellation fees in case of a failed launch. However, these policies come at a high cost, with premiums ranging from $50,000 to $500,000 per person depending on the length of the trip and the risks involved.

But how are these policies even developed? With no past data or statistics to base their calculations on, insurance companies are faced with a significant challenge. They must create policies that cover the unique risks of space travel without being able to accurately predict the chances of an accident occurring. This is where the role of underwriters in the insurance industry becomes crucial.

Underwriters are responsible for assessing the risks involved and determining the premiums of an insurance policy. They play a key role in the development of space tourism insurance by analyzing the technology, safety measures, and overall risks of space travel. Underwriters must also consider the level of expertise and training of the pilots and crew, as well as the reliability of the spacecraft and its components.

Apart from accidents, another important consideration for space tourism insurance is the potential damage to third-party property. As the number of commercial space flights increases, the likelihood of a spacecraft or its debris damaging property on Earth also increases. This presents a unique challenge for insurance companies, as traditional property insurance does not cover damages caused by objects in space. Therefore, space tourism insurance policies must include coverage for potential damages caused to third-party property.

Another factor to consider is the implications of liability laws in space. Currently, there are no international laws or treaties in place that determine liability in space. This means that in case of an accident involving a commercial space flight, it is unclear who would be held responsible. As a result, insurance companies must anticipate the potential legal implications and consider them when underwriting space tourism insurance policies.


In conclusion, space tourism insurance is a new and rapidly developing field in the insurance industry. The risks involved are unique, and the development of policies to cover these risks presents a significant challenge. However, as space tourism becomes more accessible and affordable, it is essential to have insurance policies in place to protect both passengers and third parties. With the help of underwriters and advancements in technology, the goal is to make space travel as safe and secure as possible for all those who are brave enough to embark on this extraordinary journey beyond the Earth’s atmosphere.

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