Weather warnings are issued by national meteorological offices to warn businesses and the public of impending severe weather with the potential to cause risk to life, damage property or disrupt travel.
For leisure and hospitality businesses, particularly those with outdoor operations, severe weather warnings often require pre-emptive action, such as closures or event cancellations, to protect guests and staff from harm. These pre-emptive actions often result in lost revenue or extra expenses, regardless of whether the forecast event occurs.
Traditional insurance policies typically don't cover these financial impacts as they respond to actual events and resulting damage. To close this protection gap Willis, a WTW business, has designed a Parametric Weather Warning Insurance Solution.
An innovation in parametric solutions
Parametric Weather Warning Solutions provide a pre-agreed payout when your national meteorological office issues a red weather warning that impacts your area of operation.
By focusing coverage on the weather warning, rather than the weather event, the policy responds to financial losses resulting from pre-emptive actions you may take because of the weather warning.
How do Parametric Weather Warning Solutions work?
- Coverage is triggered by a red weather warning issued by your national meteorological office affecting your chosen covered area.
- The warning is the event that activates the policy, not the actual weather event or any resulting damages.
- Once the policy is triggered, a payout is made according to the pre-agreed parameters of the policy.
- You can select the payout you need in advance.
- Payouts can be made within a matter of weeks, enabling rapid recovery from unexpected expenditure or lost revenue.
- There’s no need for any local on-site loss adjustment.
How can Parametric Weather Warning Solutions support your business?
Enjoy peace of mind. The policy is transparent and easy to understand. If a red weather warning is issued in your covered area, you’ll get a payout.
Get rapid financial support before severe weather hits. You’ll receive a pre-agreed payout quickly once a red weather warning is issued.
You’re free to choose how to spend your claims proceeds. You can spend your payout in whatever way your business needs, whether that’s covering lost revenue or meeting additional operational costs, such as preparing grounds or equipment ahead of forecasted severe weather.
What kinds of organizations can benefit from Parametric Weather Warning Insurance Solutions?
Parametric Weather Warning Insurance Solutions can prove particularly beneficial for:
- Leisure and hospitality businesses, such as theme parks, hotels, resorts and leisure centers
- Outdoor events or festivals
- Any business with outdoor operations or facilities vulnerable to severe weather conditions.
Discover how your business can benefit from Parametric Weather Warning Solutions — get in touch with our parametric insurance specialists.
