{"id":1699,"date":"2011-12-27T13:52:50","date_gmt":"2011-12-27T18:52:50","guid":{"rendered":"http:\/\/www.noyeshallallen.com\/?p=1699"},"modified":"2017-11-09T08:52:02","modified_gmt":"2017-11-09T14:52:02","slug":"you-cant-guarantee-the-weather-but-you-can-insure-it","status":"publish","type":"post","link":"https:\/\/www.noyeshallallen.com\/blog\/you-cant-guarantee-the-weather-but-you-can-insure-it\/","title":{"rendered":"You Can’t Guarantee The Weather – But You CAN Insure It!"},"content":{"rendered":"

Many southern Maine jewelry store customers were hoping for snow on Christmas Day. Why? A local jeweler ran a well-advertised promotion promising free jewelry if it snowed on December 25. How can they afford to take that chance? We don’t know for sure, but we hope they\u00a0consulted their local Maine insurance agent<\/a>. While our agency had nothing to do with this promotion, we have helped clients reduce their risk by\u00a0selling them weather insurance for special sales or events.<\/p>\n

Can a Business Insure Against Bad Weather?<\/h4>\n

You bet! Let’s say your business\u00a0plans an open house or a big one-day sale. You advertise heavily for 2 weeks before. You buy extra inventory, and add extra staff to take care of demand. But, a heavy\u00a0snow storm keeps your potential customers at home, and you\u00a0lose a lot of money. Or, you could buy a weather insurance policy to help recoup part of those costs, and cut your loss.<\/p>\n

Can a Business Insure Against a Rainy Summer – or a Warm Winter?<\/h4>\n

What if your minor league baseball team suffers through a rainy summer? Or your tubing hill business encounters a warm, dry winter? Your organization might lose all sorts of same-day revenues: walk-up tickets; concessions; parking income, and more. A customized weather policy might pay\u00a0a\u00a0set amount if more than a certain number of game days have a specified amount of rain. A snow-area business could insure a mild winter in the same way, thereby stabilizing their income.<\/p>\n

How Does Weather Insurance Work?<\/h4>\n

Like a good news article, weather insurance\u00a0addresses the 4 W’s: What, When, Where and Who. As long as the event is measurable and the terms are specific, it can be insured. The price depends upon the terms. For example, if 6 inches of snow fall at a specific address in Portland, ME between 12:01 am and 11:50 pm on December 25 as measured by the National Weather Service, the insurer pays an agreed amount or percent of\u00a0 a pre-determined period sales. Decrease the number of inches and\u00a0you’ll pay more premium; shorten the sale period, you’ll pay less.<\/p>\n

Fifteen\u00a0Businesses That Might Buy Weather Insurance:<\/h4>\n