Extreme weather is becoming more and more common these days, but even run-of-the-mill heat, rain, or snow can ruin an event or make it very difficult to carry out certain business operations, like construction. And when you have put thousands of dollars into a multi-day festival, film shoot, wedding, outdoor sale, or any type of activity that can be negatively impacted by the weather, it can be devastating to have to cancel or postpone due to intense heat or a dangerous storm. Even worse, you might not be able to recoup your costs, unless you have weather insurance.
COVERAGE: Simply put, if your business loses money as the result of an adverse weather-related event, weather insurance can help to cover your costs. From there, it gets a little more nuanced. Depending on what type of policy you buy, weather insurance can cover both high-probability and low-probability weather. Low probability weather might include earthquakes, floods, hurricanes, and natural disasters. But a weather insurance policy can also apply to common weather like rain, fog, or snow, and can sometimes even kick in after a specific amount of precipitation, or if precipitation occurs over a certain number of hours. (So if it rains for four hours during your outdoor festival, you can recover some of the revenue you might have earned had it not been raining.)
COST: The cost of a weather insurance policy can vary quite a bit because it's based on a specific area and time of year. If you want to purchase a policy that covers rain and snow, for example, your insurer will figure out how likely it is that the type of weather will occur on the date or dates of your event, and your premium will be adjusted accordingly. Be sure to contact your insurer at least two weeks in advance of your event in order to get coverage.
CONDITIONAL WEATHER INSURANCE: Some business owners use a specific type of weather insurance, known as conditional weather insurance, to bring attention to and run promotions for their business. This type of promotion entices customers by giving rebates or sometimes even free services or merchandise if a specific weather event occurs. For example, you might give customers a discount if it snows a certain amount, or on a certain day. A conditional weather insurance promotion can be a fun and effective way to bring in new customers. Your insurance agent can help you design a policy that works for the season and the kind of promotion you desire.
WHO NEEDS WEATHER INSURANCE: Adverse weather impacts everyone, but it can be especially damaging for a small business owner whose business operations depend on sunny skies and tolerable temperatures. If that describes your business, then purchasing weather insurance is probably going to be much less costly than paying for your event to be rescheduled, or having to pay your employees and keep your business running when you are unable to carry out business operations due to weather. Talk to your insurance agent about finding the right weather insurance policy for you.
For all of your insurance questions, call or contact Robins Insurance today.