Weather Risks insurance

What is Weather Risks insurance?

Weather risks insurance is designed to protect your balance sheet from losses that can arise from weather-related events, such as floods, storms, and other extreme weather conditions. 

Nearly every business will have exposure to the extremes of weather. Every client is wary of different scenarios and timeframes: every Weather Risk is different.

We can provide a completely bespoke, handcrafted policy that affords the right level of protection for you.

Weather risk insurance can provide the following solutions:  

Income Stabilization – for when adverse weather impacts revenues 

Retail figures, for example, can be hit by balmy autumn, preventing sales of winter clothing. Or footfall to a theme park could be affected by two weeks of heavy rain during the peak visitor season.

Income stabilization insurance is designed to mitigate the impact of adverse weather on revenues, protecting your balance sheet and providing certainty to the uncertain.

Example: A theme park in Southern Europe

Seasonal Revenue: EUR 2,000,000

Exposure: A theme park expects to make the bulk of its revenue during July and August, their peak tourism season.  Any unforeseen interruption during this period would have a huge negative impact on their budgeted revenues and financial stability.

Outcome: Coverage provided to protect the delta between budgeted revenues and actual revenue in the event of a shortfall due to adverse weather. 

Cost containment and Extra Expense – when adverse weather increases budgets

When an adverse weather situation demands you invest more money to carry out your plans.

For example, the costs of a movie producer needing to re-do a location shoot. Or the additional costs of keeping an airport open in snowy conditions. 

We will work with you to assess what your project would cost to keep going or reschedule as a result of adverse weather. 

Example: An International Airport

Budget Expense: GBP 1,000,000

The airport would budget GBP 1,000,000 each winter to keep the runways free of ice and snow. The budget would be there to cover the cost of using snow and ice clearing equipment and materials.

Outcome: Coverage provided to cover the additional budget needed to keep using snow and ice clearing equipment and materials should there be a prolonged spell of cold winter weather. 

Premiums and coverage are built on three key factors:    

1. Claim triggers and duration of the event

We work with you and the insurer to set concrete, data-driven policy triggers. For example, what counts as a rainy day to you? 

2. Impacts

Helping you assess the potential financial effects the weather risk would have on your business.

3. Historical Weather Data

Once we are clear on ‘what adverse weather looks like’ and the impact it will have on the business, we’ll provide a price for your protection based on the historical likelihood of such an event happening. 

Let's talk about the weather

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What to do if you are experiencing financial difficulties

We recognise that the current economic conditions are putting pressure on many households and businesses. At Howden, we are committed to finding ways to assist our customers who may require additional support during these times.

If you’re currently facing financial difficulty, please speak to us about your insurance policies by:-

-contacting your Howden Service Team; 
-calling Howden on 020 7623 3806;
-using the Enquiry form.

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+44 (0)20 7623 3806

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