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Weather Insurance |
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Weather Insurance protects against
adverse weather conditions that reduces attendance and revenue. It is
designed to offset not only the revenue lost due to reduced attendance
but other revenue sources such as concessions, food and parking. It can
cover perils such as Rain, Snow, Wind and Temperature. |
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| Standard property
insurance typically covers income losses only when they result from
direct physical damage to insured property by a covered peril. Weather
insurance fills a gap by providing coverage when weather causes a loss
in income or increase in expenses, but with no attendant physical
damage.
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.
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.
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Film Production and
TV Commercial Filming is the most tailor-made coverage. Film
Production usually takes several days, weeks or even months.
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filming are: |
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Excess Rain |
Excess Snow |
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Wind |
Fog |
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Underwater Visability |
Reasonable Photographic Conditions (RPC)
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Limited Filming Conditions (LFC) |
Sunshine |
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Lack Of Snow |
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Rain insurance coverage protects any
outdoor event from lost revenues due to the occurrence of rain (i.e.,
reduced ticket sales, concessions, etc). Furthermore, this unique
coverage can also be structured to recover any un-recoverable expenses
that your event may liable for even though it is rained out (i.e.,
featured entertainment, venue costs, corporate sponsorships, etc.).
The Insured can structure a policy to protect any single and/or
multi-day event as well as seasonal type coverage (i.e., summer months,
etc.) from the negative effects of adverse weather (i.e., concert
series, golf courses, etc.).
Premium rates generally vary
depending on the above parameters. For example, a special event such as
a one-day concert, fair or festival may require a rate of between three
(3%) and twelve (12%) percent. Longer term coverage for risks such as
promotions, business interruption, or municipal snow remove can run
upwards of three (3%) to five (5%) percent. Rates may be reduced by
either.
• reducing the
number of hours/days of coverage,
• adding an alternate "rain date" for the event
• increasing the "triggering" rainfall/snowfall amount
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Products like
rain-accumulation or rain-free-hours will allow your organization the
ability to stabilize your bottom line.
Rain-Accumulation coverage allows the insured the ability to
select an increment of total rain accumulation that they feel negatively
impacts their event (i.e. ¼", ½", etc.) over a selected time period
without regard to the number of times rain begins and ends during the
covered hours.
Rain-Free or Dry Hours coverage allows the insured the ability to
select a number of hours within a given time period in which there is no
rain accumulation (i.e., six hours out of a nine hour period during an
event). An o’clock hour in which the agreed upon threshold is not
exceeded (i.e., if the selected rain free threshold is 1/100” (.01)
inch, rainfall within a 60 minute period (an o’clock hour) must meet or
exceed that increment in order to be considered rainfall). Choice of
threshold for this product is 1/100”, 2/100”, 3/100” or 5/100”. |
Choose the date(s), hours of coverage, limit of insurance
(un-recoverable expenses, revenue at risk or event profits). Please note that these inputs
are critical in determining the rates for your coverage. |
Policy pays the agreed value if the specified weather condition occurs
no gross receipts needed - premium must be paid in full 7 days in
advance. |
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