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 Virtually
every business is subject to some fiscal impact that either
directly or indirectly is affected by the weather. It is something
that deserves attention from business owners and financiers
as weather risk can cause earnings to fluctuate significantly
from year-to-year.
This coverage allows any business/event the ability to predict steady cash flow during a predetermined time period regardless of the weather conditions – most often used during peak sales season.
| Examples: |
- A golf course owner may consider taking out a policy that will cover the course during all weekend days throughout the summer months for the occurrence of adverse weather (i.e., greater than 1" of rain in a 24hr period, etc). The course may structure a policy to compensate for diminished revenues (i.e., reduced green's fees, cart fees, food/beverage purchases, apparel and other pro shop purchases) due to adverse weather. This coverage will allow the golf course to hedge against significant swings in their revenue stream as well as stabilize their cash flow.
- A Major League Baseball Team may consider protecting their game day revenues by instituting this type of weather coverage. With this protection, when rain-outs occur and revenues are lost due to scheduling limitations, all monies associated with the games such as ticket sales, concessions and parking are recoverable under this insurance policy.
- A manufacturer or dealer of snowmobiles and/or snow blowers have a significant amount of their new business sales tied to the weather (i.e., snowfall). There is a direct correlation between their sales and the amount of snowfall within a particular region. These manufacturers and/or dealers can structure a snow insurance policy that would hedge against winters where there was significantly less than average amounts of snowfall in their region.
- A ski resort has a significant amount of their revenue tied to the weather (i.e., snowfall). There is a direct correlation between their total revenue and the amount of snowfall within a their particular region. These ski resorts can structure a snow insurance policy that would hedge against winters where there is significantly less than average amounts of snowfall in their region.
- A jeweler may want to insure the preceding days/weekends of Christmas or Valentine’s Day for extreme weather conditions. Excess snowfall during the weekend shopping days may prevent your customers from visiting the stores during peak season.
- A retail store promoting/advertising a particular sale or introduction of a new store during its grand opening week. Without knowing the expected weather conditions in advance, the furniture store may be at risk of experiencing extreme weather conditions during that particular period (i.e., excess snowfall or rain) which will reduce customer attendance.
- A car wash may want to consider implementing coverage for rain insurance on their busiest weekends (or all weekends) in an effort to stabilize their cash flow.
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All-Weather Insurance Agency will provide you with customized insurance coverage tailored to meet your business needs.
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Apply for Weather Insurance
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