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Protection Against the Weather
As the old saying goes, everyone talks about the weather, but no one does anything about it. Well, that might not be entirely true. You can’t change the weather, of course, but you can buy insurance to protect yourself – and perhaps to give you some peace of mind – in case the weather plays havoc with a big event you have planned.
What if it pours rain the weekend of your daughter’s outdoor wedding, or a blizzard keeps away guests from the party you are throwing for your parents’ 50th anniversary? You can obtain “weather insurance” to recover some or all of the costs associated with the event, and the event does not have to be canceled in order to collect on the policy.
You also can obtain coverage for fundraising, sales or other events that your business or organization sponsors. For example, what if lightning cuts short a charity golf outing or fog keeps a concert headliner from arriving for a show?
In these cases, you could stand to lose considerable money. You might lose the money you have put down for the rental of a venue and for tents, chairs, etc. You also might lose money you already have paid a caterer, or money for hotel accommodations and airline tickets for out-of-town guests. In the case of a business or charitable event, you stand to lose not only what you have spent to put on the event, but also the money you would have made for your business or collected for your charity.
When you are buying weather insurance, you first look at how much you already have spent that you could not get refunded if you had to cancel or severely curtail the event. Then, consider costs you would incur as a result of the weather. For example, would you have to rent another venue? Would you have to hire someone to plow out a parking lot? Do you have a guaranteed fee to an entertainer or event participant that you have to pay even if the show does not go on?
Finally, if this event is a business or charity event, figure how much you expect to make as a result of the event, and how much less you would make if the weather does not cooperate.
Next, consider the extent of bad weather that could cause cancellation of your event. Would you be OK with 2 inches of rain? Six inches? A foot of snow? You also can buy coverage to protect against lightning, extremes of temperature, fog, and just about any weather-related problem.
The cost of this coverage is based on the type of weather, the coverage “trigger” (such as 6 inches of snow or more in a 24-hour period) and the amount of money you wish to recover. The premium is calculated as a percentage of the coverage limit, with a $500 minimum premium applied as well as a fee for third-party verification of weather results. Weather results can either be measured at the event location or at the closest official weather station, usually the closest municipal airport.
We would be happy to discuss this or any other coverage issues with you. Feel free to contact us at 847-572-0800 or email@example.com.