spacetoday.net: Intelsat to end on-orbit insurance of satellites

Posted: Fri, Mar 4, 2005, 7:46 AM ET (1246 GMT)
Intelsat executives said Thursday that the satellite operator will no longer purchase insurance for its satellites already in orbit, despite recent problems with two existing satellites. Company officials said they can save up to $15 million by no longer purchasing coverage for satellites already in orbit, elected to use its fleet of satellites to provide backup coverage in the event of a failure. Intelsat will continue to purchase insurance to cover the launch and the first 6-12 months of a satellite's life. Intelsat already was not purchasing insurance for satellites whose estimated value was below $150 million. Company officials also said in a conference call Thursday that the problem that partially crippled the Intelsat Americas 7 (IA-7) satellite last year was likely caused by a design flaw that also affects the IA-6 satellite currently in orbit, but that the odds of IA-6 being similarly disabled are low.