There are a number of different insurance policies surrounding launches and payloads. Several different ones cover the satellite: from the time it leaves the factory that produced the satellite through the time that the rocket engines are ignited it is likely covered by an inland marine cargo policy; during the launch itself it is covered by a policy that would pay out if something happened during launch; and finally, there is insurance making sure the satellite is actually operational once it is on station (this one will pay out if there were defects in the https://www.kinkhost.com satellite manufacturing process causing reduced capability). The US Government does not take out any type of payload insurance, they effectively self insure.
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