This excerpt taken from the SIRI 10-Q filed Nov 12, 2008.
Potential losses may not be covered by XMs insurance.
Insurance proceeds may not fully cover XMs losses. For example, XMs insurance does not cover the full cost of constructing, launching and insuring new satellites or XMs in-orbit spare satellites, nor will it cover and XM does not have protection against business interruption, loss of business or similar losses. Also, XMs insurance contains customary exclusions, salvage value provisions, material change and other conditions that could limit its recovery. Further, any insurance proceeds may not be received on a timely basis in order to launch a spare satellite or construct and launch a replacement satellite or take other remedial measures. In addition, some of XMs policies are subject to limitations involving large deductibles or co-payments and policy limits that may not be sufficient to cover losses. If XM experiences a loss that is uninsured or that exceeds policy limits, this may impair its ability to make timely payments on its outstanding notes and other financial obligations.