rain insurance vs event insurance

The Difference Between Rain Insurance vs Event Insurance

red umbrella on a wet surface representing rain insurance vs event insurance

When planning for your event’s success, you have to look at many ways to promote the event and also to protect it.

Event insurance is a key factor in protecting your company and your event from the costs of possible damage associated with your event. However, sometimes, event planners and organizers find some confusion between rain insurance and event insurance. 

At Vortex Weather Insurance, we get those calls. An event planner, charity organization, or golf tournament, to name a few, may contact us for insurance to protect property from weather damage. 

A significant difference between our insurance and traditional property insurance is that physical damage is not a factor when determining claims. Contact us with any questions about weather insurance, and read on to better differentiate between rain insurance and event insurance.

Event Insurance

This insurance is meant to cover the damage or accidents that occur at events. We have a more comprehensive list of event insurance types available, but for our purposes here, think of event insurance as including:

  • 3rd-party damage
  • General liability
  • Liquor liability
  • Worker’s compensation

Event insurance should protect you, your organization, and your sponsors from liability should an issue arise. Claims will be made, adjusters will need to create estimates, and in extreme situations, lawyers will duke it out over the results.

Rain Insurance

The biggest difference when comparing rain insurance vs event insurance is that rain insurance claims are not determined by physical damage. It’s not necessary to even review damage. You don’t have to prove any kind of physical damage or loss for a rain insurance policy to pay out.

If you’re unfamiliar with rain insurance, it’s a type of insurance policy that helps protect your event from adverse weather and the potential of causing financial loss.

Rain Insurance for Your Event

Vortex Weather Insurance creates policies completely based on two things: your event’s unique parameters and the rainfall data. 

The information we need to define the parameters of the policy includes:

  • Event Location
  • Date and Time Window
  • Rain Threshold
  • Coverage Amount 

We take that information, along with historical weather data from your event location, and create a rain coverage policy for you that addresses recorded rainfall at that location.

Independent Results Through 3rd-Party Data

We don’t record the weather data or consult with local meteorologists. We gather data from the National Oceanic and Atmospheric Administration (NOAA) for the most reliable, completely independent, and accurate information. Their data is recorded by the hour and generated to report within a 2.5 mi-square grid, including your event location.

Within a week after your event, we collect the index data from NOAA for the hours covered by your policy. The Vortex Weather Insurance staff will verify that data, and if your policy is triggered by the rainfall amount recorded in your 2.5 mi-square grid, we’ll send the claim to our corporate headquarters. Once they review the claim, they’ll cut a check and get it in the mail.

Event Rain Out Insurance

What rain insurance can do for you as a form of event insurance that may be confusing is that it acts as supplemental insurance for your event in the case of inclement rain that can affect attendance or outright cancel the event. Think of it as event rain out insurance or rain insurance for your event.

It’s not necessarily event insurance that covers non-weather liabilities but instead the liability of unpredictable weather that could lead to a loss in revenue.

The great thing about rain insurance and rain coverage policies is that your policy claim doesn’t require you to prove any loss from any source. It’s completely based on the recorded rain data for your location and coverage time. 

What really surprises clients is when the policy is triggered, but their event wasn’t canceled—they still received their payout.  That’s because it’s not about physical loss. Rain insurance from Vortex Weather Insurance only concerns the rainfall amount.

Ask Vortex About Rain Insurance vs Event Insurance

Contact us with your questions. We can help you understand how weather insurance works and how it’s different from traditional property and liability insurance. We can do the same for your organization’s insurance agent to keep your event protected from top to bottom line.