Promotional Weather Insurance - Use the Weather to your advantage!

Weather Insurance is frequently used as a Promotion to drive sales. Typically, an Insured will run a Promotion in which they will:

1. Designate a Sales Period
2. Choose an estimated Dollar amount of Sales that will occur within this time Period
3. Choose a date afterwards and Insure against a specified weather event happening at a specified location. It could be Rain, Snow, Temperature, or Wind Speed.
4. If the Weather threshold is reached or exceeded, on that date, at that location the Insured will receive the amount Insured, and will use it to Reimburse their Customers 100% of the value of their Purchase

For Example:

• Car Dealership Zoomzalot chooses the Sales Period to be November 10th to December 10th.
• They estimate they will sell $750,000 worth of Vehicles during the Sales Period.
• They choose January 1 as their Insured Date, and 6 inches of Snow or greater as the Peril, at the location of their Dealership.
• The Premium is calculated and the Insured pays 50% of the Premium.
• At the end of the Sales Period an exact Sales figure is provided by the dealership and the Insured pays the Balance of the Premium, adjusted based on that Exact Sales Amount
• If there is 6 inches or Greater of snow, on January 1st, at their Location, they receive the Exact Sales amount. They in turn reimburse all of the customers who purchased vehicles during the Sales Period 100% of the Purchase Price.

Event Weather Insurance - Don't let Weather events spoil your Event!

This Insurance is typically used by an Organization to recover Investment / Lost Revenue should an outdoor event be negatively affected by a Weather event.

For Example:

The Small Town of Rainsalot holds an annual 3 Day fair on July 1st, 2nd, and 3rd. They put quite an investment in Venue, entertainment and the like. It costs the town $25,000 per day to run the event. Last year the weather didn’t cooperate, in the form of much moisture from the sky, and they lost money. They fear that they may not be able to risk holding their fair and losing money again this year. What should they do? Rather than not holding their beloved fair and disappointing townspeople and visitors alike, they find out they can purchase Insurance! fair and disappointing townspeople and visitors alike, they find out they can purchase Insurance!

• They figure that 2 inches of Rain at the Fairgrounds between the hours of 9am and 9pm on any of the three days would be a serious deterrent to potential Fair Goers.
• They Purchase a Policy for a limit of $25,000 for each day, at the Fairground location. In the event it rains 2 inches or more at that location, one or more of the Insured Days they will recover their investment.

Important Consideration:
Weather Insurance is NOT the same as Cancellation Insurance. The Policy will pay out based only on the Weather Threshold Insured being reached. The event does NOT have to be Cancelled.

Please Note:

The Two examples above represent only two of the potential reasons Weather Insurance may be useful to you. There are many other situations in which Weather Insurance can be used. If you have an event in which there is a Risk presented due to Rain, Snow, or other Weather Events, please give us a call, or send an e-mail, and we would be happy to discuss!