---
title: "Does maximum probable loss mean the maximum possible launch loss?"
description: "No. Maximum probable loss is a probabilistic estimate for the applicable licensed launch or reentry, not a ceiling on possible costs."
canonical: "https://spot.insure/industries/aviation-and-space/what-does-maximum-probable-loss-mean"
page-type: "industry-faq"
updated-at: "2026-09-28"
---

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# 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. [Financial Responsibility](https://www.faa.gov/space/licenses/financial_responsibility)

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. [Financial Responsibility](https://www.faa.gov/space/licenses/financial_responsibility)

Ask the broker to identify any separate aviation, launch, or space wording and compare it with the mission phases and named assets. [Commercial Insurance Guide](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm)

## Need Help Choosing Coverage?

Spot prepares your applications, coordinates with brokers, and helps you compare quotes so you can choose coverage with the key details in front of you.

[Book a Free Consultation](https://cal.com/team/spotinsure/insurance-consultation)

[Read the Aviation and Space Insurance Buying Guide](https://spot.insure/industries/aviation-and-space)

## More Aviation and Space Questions

- [Does every aerospace business need aircraft insurance under federal rules?](https://spot.insure/industries/aviation-and-space/does-a-federal-contract-require-aircraft-insurance)

## Coverage to Discuss

- [Workers’ compensation](https://spot.insure/coverage/workers-compensation)
- [Product liability](https://spot.insure/coverage/product-liability)
- [Cargo and transit](https://spot.insure/coverage/cargo-transit)
- [Tools, equipment and inland marine](https://spot.insure/coverage/inland-marine)
- [Commercial property](https://spot.insure/coverage/commercial-property)
- [Umbrella and excess liability](https://spot.insure/coverage/umbrella-excess)

## Sources and Further Reading

- [Commercial Insurance Guide](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) — 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](https://www.faa.gov/space/licenses/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](https://www.acquisition.gov/far/28.307-2) — 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](https://spot.insure/editorial-policy).

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