SpaceX Falcon 9 explodes along with Facebook satellite payload

Elon Musk owned aerospace manufacturer and space transport services company SpaceX, has faced a major loss. The company’s Falcon 9 rocket exploded while completing a routine test-fire at 9:07 am ET. The testing was being done in preparation for a launch which was scheduled for this Saturday. While there were no injuries involved, the AMOS-6 satellite which was onboard, got destroyed along with the rocket. This satellite was set to be launched to geostationary orbit and provide internet to various parts of Africa as part of Facebook’s Internet.org initiative. The total cost of the satellite was nearly $200 million. In October 2015, Facebook and satellite fleet operator Eutelsat had agreed to pay $95 million over about five years to lease the Ka-band spot-beam broadband capacity (36 regional spotbeams with a throughput of about 18 Gbit/s) on AMOS-6 to provide service for Facebook’s Internet.org and a new Eutelsat subsidiary focusing on African businesses. An in-depth analysis concludes that the rocket and payload both were destroyed, which means a loss of hundreds of millions of dollars’ worth of equipment. There was also a significant damage to the launch pad at Cape Canaveral. So who will be responsible to pay for the damages? Well when there are large and expensive payloads involved in a rocket launch, they are usually insured. According to CNBC, there are only about 50 insured launches each year paying about $750 million in premiums to a handful of companies. Now that’s a lot of money. However, this launch accident was unique as the explosion occurred right before the engine ignition. The insurance was only valid once the engine kicked in. Thankfully, most of the damages could be covered by another insurance known as marine cargo insurance.