WEATHER INSURANCE

A MANAGEABLE FIXED COST INSTEAD OF UNPREDICTABLE INCOME DISRUPTION OR EXPENSE

Types of perils that can be insured:


• hurricane loss
• see link FAQs for full description and examples.
• The 2005 Rate for Cape Cod is 1.1%
• The minimum premium is $2500
• premium subject to a 4% "surplus lines" tax and a nominal inspection fee
  
• rain (will/won't/amount)
• snow(will/won't/amount)
• sunshine(% of available)
• sky cover(scale of 1-10, e.g. 9 is overcast)
• opacity(scale of 1-10, 10 indicating no light is present)
• temperature (heat/cold/average)
• wind(average or maximum)
• tornado (including warnings)
• lightning
• fog

Types of activities that can be insured:

any business, activity, or budget item that can be affected by weather

• tourism related businesses
  • motels
  • restaurants
  • retail
  • rentals
• fairs, festivals, concerts
• sporting events
• air shows
• film crews
• snow removal expenses
• increased fuel costs
• weather related sales promotions

Some examples

INCOME STABILIZATION

• A whale watch tour company covered their summer season for rain during insured hours
• A restaurant bought coverage for snowy winter Saturdays
• A seminar promoter bought snow coverage in case of storm-related cancellations
• A car wash insured against a rainy month

  SPECIAL EVENTS

• A city collected when a March storm closed the airport and kept the guest speaker from an awards dinner
• A restaurant collected when rain spoiled a scheduled live performance
• A soccer game promoter collected when rain reduced attendance

  WEATHER COST CONTAINMENT

• A condominium collected when winter snowfall exceeded 80"
• A town collected when there were more than seven snowstorms.
• An airport wanted $25,000 removal costs per inch of snow after a 50" deductible

  SALES PROMOTIONS

• "If two inches of snow falls on Christmas, items bought in December are free"
• "If it rains on July 4, your car lease is free"
• "If the summer averages less than 75 degrees, your air conditioner is free"