The FAA made SpaceX boost its accident insurance 33-fold, to $100 million, before Starhopper's last launch. Here's why.

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The FAA made SpaceX boost its accident insurance 33-fold, to $100 million, before Starhopper's last launch. Here's why.
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The Federal Aviation Administration is supposed to keep the public safe, yet also help private companies like SpaceX. Insurance helps bridge the gap.

SpaceX successfully launched and landed its Starhopper rocket-ship prototype in South Texas on Tuesday, a key step in the company's quest to reach Mars. Before Starhopper's final flight, though, the Federal Aviation Administration asked for"more hazard analysis" — likely because the launch site is near a small hamlet called Boca Chica Village. The US regulator required SpaceX to boost its liability insurance coverage from $3 million to $100 million after the analysis.

SpaceX successfully launched and landed its Starhopper rocket-ship prototype in South Texas on Tuesday, a key step in the company's quest to reach Mars. Before Starhopper's final flight, though, the Federal Aviation Administration asked for"more hazard analysis" — likely because the launch site is near a small hamlet called Boca Chica Village. The US regulator required SpaceX to boost its liability insurance coverage from $3 million to $100 million after the analysis.

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