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Orbital Insurers Are Separating Custody Risk From Hardware Risk

Observation and compute claims are increasingly split between physical failure and information-handling failure.

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Insurers increasingly want custody risk priced separately from hardware risk.

That split reflects a basic truth of off-world infrastructure. A platform can remain mechanically healthy while still suffering a commercially or politically expensive failure in logging, routing, retention, or derivative handling. Earlier policy language often blurred those categories together. That is getting harder to justify.

Once custody becomes its own loss class, operators have fewer places to hide weak information discipline behind strong engineering performance.

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