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 for revenue generation, you have to look at many ways to not only promote the event, but protect it.

Event insurance is a key factor to protect your company and your event location from the costs of possible damage associated with your event. However, sometimes event planners and organizers find some confusion over rain insurance vs event insurance. 

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

That’s not what we do. #sorry

Our insurance is all about weather data, and not about damage estimates. Contact us with any questions you might have about weather insurance, and read on to better differentiate between rain insurance vs event insurance.

Event Insurance

This insurance is meant to cover the damage or accidents that happen at festivals. 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 comp

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 too often lawyers will duke it out over the results.

Related topic: how a weather insurance claim works.

Rain Insurance

When comparing rain insurance vs event insurance, the biggest difference is: rain insurance doesn’t cover physical damage. It doesn’t even look at 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 not familiar with rain insurance, that may seem really, really easy. That’s because it is.

How Rain Insurance Works

Vortex Weather Insurance creates policies completely based on 2 things: your information, and the rainfall data. 

We’ll need information from you to define the parameters of the policy. That information includes:

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

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

Honest Results Through 3rd Party Data

We don’t create the weather data, nor do we address local meteorologists. For the most reliable, completely independent, and most accurate information, we gather data from the National Oceanic and Atmospheric Administration (NOAA). Their data is recorded by the hour, and generated to report within a 2.5 mi-square box that includes your event location.

Within a week after your event, we collect NOAA data 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 box, 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.

Related topic: the simple truth about rain insurance pricing.

No Damage Required

Your policy payout doesn’t require you to prove loss from any source, period. It’s completely based on the recorded rain data for your location and coverage time. 

What really surprises clients is when the policy 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 Us About Rain Insurance vs Event Insurance

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

Don’t let rain wash away your revenue. VortexIt today.