Key Legislation: Space (Launches and Returns) Act 2018 Insurance

Requirements: Launch permit holders must carry third-party liability insurance. The minimum coverage amount is determined by the Australian Space Agency based on mission risk.

Government Risk Sharing: The Act allows for a limited indemnity by the government for catastrophic losses above the insured limit

Prerequisites:

• Institutional & political interest and support for developing launchers and other dual use technologies  

• Legal expertise in space law, insurance, and liability

• Coordination with international frameworks (Outer Space Treaty, Liability Convention) and mechanisms between space agencies, insurers, and regulators to ensure clear roles, responsibilities, and communication in managing launch-related risks

• Develop familiarity with international best practices to design effective and globally aligned frameworks for launch

Cost:

• Ballpark: USD 20k–250k

• Includes: stakeholder consultations with ministries, insurers, and space agencies, drafting of legal and regulatory provisions, engagement with international best practices, establishment of liability and compensation mechanisms

Timeframe:

• Overall: 12–24 mo

• Phase: scoping & stakeholder mapping (3–6 mo), legal drafting & review (6–9 mo), parliamentary or executive approval (3–6 mo), dissemination & training (3–6 mo)

Pros:

• Insurance Flexibility – Allows for case-by-case flexibility in setting insurance levels, adapting to project-specific risk profiles.

• Government Indemnification – Enables government support in exceptional loss cases, reducing financial exposure for stakeholders.

Considerations:

• Regulatory Uncertainty – Operates within a rapidly evolving legal and policy environment, particularly for emerging commercial space activities, which can create ambiguity and risk.

• Insurance Accessibility Challenges – Involves difficulties in obtaining affordable and comprehensive insurance coverage, especially for smaller or early-stage space actors.