Never have insurance ... unless it is something you can't afford to lose. The cost of insurance is (expected-loss + insurance-company-overhead + insurance-company-profit). If you self-insure, it is just the expected loss. So never insure anything you can afford to lose. It is a bad bet.
Anyway, it is silly to conjecture about who is responsible for what cost. Here is the answer: Read the launch contract.
Wrong.When you self insure, you do not incur the "expected loss". You incur the "actual loss", which may be nothing, or could be more than anything you have.
If I had a $1m car, if I crashed it, I could lose $1m. But If I insured, I would lose the expected loss plus the overhead and profit margin.
The point of insurance is to remove uncertainty. Insurance is not a bad bet. Even very large companies such as Apple will insure because it is sensible to do so.
If you are self-insuring, you might not be using the funds you set aside wisely.