Each year in the United States, weather costs businesses an estimated $630 billion. Chances are your business pays a hefty portion of this weather bill. Adverse weather harms the bottom line of individual businesses operating in a multitude of industries such as utilities, retail, fairs and festivals, transportation, sporting events, and construction. Weather insurance can help to protect your business or your event from the costly effects of weather and is an essential part of a complete weather risk plan. If protecting your business from bad weather sounds complicated, we’re here to make it easy with three things you need to know about weather insurance.
Vortex Weather Insurance can help to minimize the financial impact of bad weather on your business. Depending on your situation, you may need rain insurance, snow insurance, event weather insurance against excessive temperatures, or a more creative policy.
How Weather Insurance Works
Weather can affect a business in multiple ways, and determining how weather may affect your business is a crucial step. Assessing your business or event’s weather risks should be based on three key points:
- How does weather impact your business?
- What weather conditions pose the most significant threat (too much/too little rain, snow, wind, drought, extreme temps)?
- Do you need single event coverage or seasonal/long-term protection?
Next, we write a weather insurance policy for your specific needs using historical weather data and expertise from our in-house meteorologists. You can worry about your business or event and not worry about the weather. If bad weather occurs and policy conditions are met—like too much rain over the festival weekend—you typically receive a payment within one to two weeks. Simple.
Who Needs Weather Insurance?
Weather protection generally falls into two categories: one-time events and long-term solutions. If you aren’t sure which length of coverage you need, contact us for help:
|One-time events||Long-term solutions|
|Fairs & festivals||Sporting event series or tournament|
|Sporting events||Lack of weather over a given time period|
|Outdoor concerts||Excess or inclement weather over a given time period|
How Much Weather Coverage Costs
The cost of weather insurance is dependent on multiple factors, which means it varies for every business. Generally, premiums are based on the likelihood of the weather event occurring. We look at factors like geographic location, the time of year you need coverage and for how long, and historical meteorological data. This insight helps us determine the likelihood of a weather event and write a policy that works for your business or event. We work hard to recognize the best ways to help your business maximize revenue with both weather protection and budget in mind. Did you know that as a result of current climate trends, the U.S. winter tourism industry lost $1 billion in a decade?With 70% of businesses affected by the weather, our clients find that the cost and risk of not having weather insurance can be much higher than purchasing a customized policy.
How (and when) to Purchase Weather Insurance?
You can plan every detail of your event or business model, but you can’t predict the weather. However, by purchasing a Vortex Weather Insurance at least 15 days before the policy effective date, you can help to diminish bad weather’s impact on your bottom line!
Whether it’s a one-time event, your entire operating season, or somewhere in between, you can rest easy with Vortex Weather Insurance. Start building your tailored weather insurance policy today with a free quote.