Via Wired, it looks like the Da Vinci Project (now renamed the GoldenPalace.com space program) is running into problems with finding insurance.

Insurance is a huge deal for suborbital startups, and will probably turn out to be a showstopper for at least some of them. I was very surprised to find out how much of a problem insurance and launch licensing (including environmental regulation) were going to be when I first got seriously involved with this area. Launch licensing is partially addressed by Senate bill 2772, but insurance is still out there. If I was to start a suborbital launch services company tomorrow I’d tackle the insurance issue in parallel with vehicle development. The right vehicle design will keep insurance costs low, and the wrong design will drive them towards infinity.