Unique & Related Coverages
Weather Insurance (and Snow Removal)
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Weather insurance policies can be used to provide financial resources to mitigate weather-related variations. A number of applications are noted below, along with a description of snow insurance.
Weather insurance does not guarantee to change the weather to suit the policyholder! Rather, it provides financial resources in the event that a change in the weather, as defined in the policy, results in a financial impact to the policyholder. Weather insurance can be used to cover financial impacts from:
- Revenue variations
- Expense or inventory variations
- Product promotions
Some examples of the application of weather insurance include:
- Event promoter wants to protect his revenue from a low turnout due to weather
- Promotion for sale of snow blowers the manufacturer is providing a partial refund if it does not snow in each purchaser's location
- Town purchases a policy to cover the additional costs of snow removal if snow fall is above average
Perils can include the following weather variations:
- Rain
- Snow
- Wind
- Temperature
- Sunshine
Weather insurers typically use the closest National Weather Service reporting station for verification of weather. In some circumstances a special verification service can be set up to address unique client needs.
Snow Removal Insurance
Snow removal insurance is a form of weather insurance that provides for a financial payment in the event that snowfall exceeds a pre-set amount for the specified period, usually a winter season. This coverage is often called "Snow Removal Cost Containment Insurance" since the primary purpose is to contain the cost of snow removal for the policyholder. Mercator Risk Services Inc. ("Mercator" or "Mercator Risk Services") has written snow removal insurance for a wide range of clients to help to protect from increased cost of snow removal from adverse weather.
Organizations that face this exposure include the following:
- Municipalities
- Airports
- Condominium Associations
- Community Associations
- Large Property Owners
- Banks (branch networks)
The increased financial burden felt by these insureds as a result of unusually high snowfall amounts can be mitigated through snow removal insurance.
Coverage
Weather insurance is written using a non-standard form with a variety of approaches. As with all forms of specialty insurance, it is very important to read the policy. In many cases the policy has a deductible and a total limit. The policy will pay a set amount per unit in excess of a deductible in the unit, up to a maximum or aggregate amount. The unit can be rain, snow or another weather measurement. By varying the amount per unit and the deductible, the premium is varied.
Get Weather or Snow Removal Insurance
Please let us know your client's specialized weather insurance needs and we will provide you with information and assistance with your particular situation or account.
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