Charter Space raises $5 million to bring insurance coverage to the space industry

Charter Space, a startup aiming to bring insurance coverage to the space industry, has raised $5 million in new funding as it works to address a gap left by traditional insurers wary of covering space-related risk.

According to the company, a recurring problem for space businesses has been that conventional insurers are often unfamiliar with the technical risks involved in launching and operating spacecraft, satellites and related infrastructure. Charter Space describes this dynamic on its website, saying mainstream insurers have historically grown wary once confronted with the technical complexity of space operations.

The new funding is intended to help Charter Space build out products specifically designed for the space sector, an industry that has expanded rapidly in recent years as launch costs have fallen and the number of companies operating satellites, launch vehicles and other space infrastructure has grown. That growth has increased demand for insurance products tailored to the risks of operating in and around orbit, from launch failures to satellite malfunctions.

Space insurance has traditionally been provided by a small number of specialized underwriters, and gaps in available coverage have at times left newer or smaller space companies without adequate protection against catastrophic losses. Startups like Charter Space are positioning themselves to serve that underserved segment of the market by combining technical expertise in space operations with the mechanics of insurance underwriting.

With the new capital in hand, Charter Space is expected to expand its underwriting capacity and broaden the range of space-related risks it is able to cover, as it seeks to establish itself in a niche but growing corner of the insurance industry.