Does maximum probable loss mean the maximum possible launch loss?
No. Maximum probable loss is a probabilistic estimate for the applicable licensed launch or reentry, not a ceiling on possible costs.[2]
Ask the mission team which license or permit, estimate, parties, and evidence apply to the planned launch or reentry. Review any spacecraft hull, payload, or interruption protection separately in the proposed terms.[2]
Ask the broker to identify any separate aviation, launch, or space wording and compare it with the mission phases and named assets.[1]
Read the Aviation and Space Insurance Buying Guide
Sources and Further Reading
- Commercial Insurance Guide — California Department of Insurance. Revised June 14, 2024: commercial property, inland marine, boiler and machinery, commercial general liability, products/completed operations, commercial auto, umbrella, and workers compensation.
California commercial guidance for general property, inland marine, CGL, umbrella, and workers compensation concepts.
- Financial Responsibility — Federal Aviation Administration. Commercial Space Transportation: launch/reentry licenses and permits, maximum probable loss, and financial-responsibility evidence.
FAA explanation of launch/reentry financial responsibility and the scope of maximum probable loss estimates.
- 28.307-2 Liability — Federal Acquisition Regulation, Acquisition.gov. FAR 28.307-2(a)-(e), FAC 2026-01 effective March 13, 2026; contract-context workers compensation, general, auto, aircraft, and vessel terms.
Conditional federal contract insurance terms; check the contract and aircraft use.
Spot, a product of Tools for Enlightenment, publishes this guide and works in the commercial insurance market. This is general buyer education; policy terms and state-specific obligations determine coverage and requirements.
Updated 2026-09-28. Editorial Policy
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