Operational insurance covers risks to a satellite after launch, once it is operating in orbit. Depending on the policy, it may respond to failures, damage, or partial mission impairment. A spacecraft does not have to be destroyed to suffer an insured loss: it can remain in orbit but lose the ability to provide its intended service.
In cyber security and space operations, this coverage matters because technical anomalies can affect service availability and revenue, while also requiring careful assessment of what the policy covers. Operators should preserve telemetry, anomaly timelines, and engineering assessments to support recovery and any claim. Coverage depends on the contract’s definitions, exclusions, and evidence; an on-orbit malfunction does not automatically mean a claim will be paid.