Business Notes Insurance

"This is the greatest disaster in the history of commercial space technology." So last week said a stunned James Barrett, president of Washington-based International Technology Underwriters, a major insurer of space satellites. Barrett's remark was prompted by the unprecedented loss of three new communications satellites in a week. Estimated value of the three, insured by INTEC and other companies: $250 million.

The first casualty was a Hughes Aircraft-built LEASAT 4 satellite, which began to malfunction, apparently because of a faulty transmission cable, about one week after it popped perfectly out of the cargo bay of the space shuttle Discovery on Aug. 29. Two other satellites, one owned by GTE, the other by a European consortium, were lost on Sept. 12 when the European Space Agency had to destroy the misfired Ariane rocket that carried them. The mishaps brought to $600 million the total cost to insurers of the seven satellites lost in the past two years. As a result, some insurers said they will limit their coverage of satellites, while others may get out of the space business altogether.